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 Grower war over Mackay Sugar 

Grower war over Mackay Sugar

24/06/2008 4:13:00 PM
ABOUT one third of growers have cast votes regarding the changes to Mackay Sugar - and both sides of the debate have issued a call to arms for growers to lodge their votes in the post.

With deadline looming (July 4), those that support the change from a co-operative to a publicly unlisted company have urged everybody to have a say.

Likewise, though, opponents are equally vocal.

Self-described "minor grower", Barry Sheedy, who is also a former Mackay Sugar board member and former manager of Farleigh mill, has spoken against the structural changes.

He said the change was not in the best interest of growers and the issue was clouded with emotion during difficult times for the industry.

"Many of the older farmers are viewing it as a means of retirement," he said.

"I feel for them but in my view it won't solve anybody's problems in terms of exiting the industry."

He said the changes would lead toward "wealthy investors" and not "healthy farmers", with profits paid out as dividends and not on sticks of cane, as is currently the case.

"The smart investors of the world will go and buy a cane farm, share-farm it with somebody and then be regarded as an active farmer with a vote and able to buy 5pc.

"I'm not a serious cane farmer but I can go and buy shares like a drunken sailor and absorb all the dividends.

"And all the young blokes are establishing themselves and can't afford to buy shares, but they are producing the wealth.

"I don't think that is an ethical approach. We need healthy cane farmers, not wealthy investors."

As at this afternoon, 30pc of a potential 961 votes had been lodged with Mackay Sugar.

Strong supporter of the structural changes and young farmer, Jeffrey Grech, said the region had "outgrown" the co-operative structure and it was time to move on.

"The way the Mackay Sugar directors have put this to us is the growers still have as much control as they can possibly have," Mr Grech said.

"To take the next step forward we need to be able to raise some capital. New projects (like cogeneration) are very, very important."

He added that the change would see farmers with equity in terms of their shares.

"We had 80pc of people vote last time and we need 100pc this time."

Source: Queensland Country Life, June 26.

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