Section 2 - Sugar Research and Development Corporation

10
Section 1
INDUSTRY PROFILE
Factors, trends and events that infl uenced SRDC’s performance in 2010–2011
or that may infl uence its performance in the future.
Factors
The key industry drivers for the Australian
sugarcane industry include:
��globalisation ��competition ��climate change
��environmental sustainability
��social sustainability
��biosecurity ��process and product health and safety
��enhancement of human capital
��availability of new science and technology.
Trends
World markets
Increases in sugarcane production are forecast
for most major producing countries, but are likely
to be particularly large in Brazil depending on
how much is diverted to ethanol production.
Lower world oil prices cause weaker demand for
Brazilian ethanol in domestic and export markets.
International market and production fl uctuations
give the Australian industry opportunities to
regain any lost market share.
Government Policy
The industry is operating in an environment
of changing government policy with the
introduction of the Great Barrier Reef Protection
Act 2009 and changes to the Queensland
Environmental Protection Act 1994 and Chemical
Usage (Agricultural and Veterinary) Control
Regulation 1999 that seek to reduce the risk
of sediment, nutrients and herbicides leaving
coastal farms and affecting the health of the
Great Barrier Reef. In addition, the renewable
energy target announced by the Australian
Government has seen a renewed interest in
sugarcane co-generation operations.
SRDC Annual Report 2010–2011
Diversifi cation
Raw and refi ned sugars, ethanol, furfural,
molasses, liquid fertiliser, compost, fodder, and
landscape mulch, and co-generating electricity
are already being produced from the sugarcane
crop. While on the horizon SRDC is investing
in more cane value adding research to produce
paper products, bioplastics, biofuel, nutraceutical
compounds, value-added foods, industrial
proteins and high fi bre varieties for biomass
production.
Other challenges and opportunities
The industry will also be subjected to other
trends that may create opportunities and
overcome challenges for research-based
solutions:
��restructuring of mills and mill operations;
��reassure on transport systems from mill
closures;
��genetically modifi ed varieties;
��urban development pressure on sugarcane
land in popular coastal regions;
��declining terms of trade and sugar price
volatility;
��margin pressure leading to larger farms,
corporate farming and increased sugarcane
farming by mill owners;
��need for productivity increases to improve
cost competitiveness with Brazil and to
maintain viability;
��environmental pressures and climate change.