According to lobby group Canegrowers, the closure of the Pleystowe mill is disappointing but not unexpected given the on-going rationalisation and restructure of the entire industry.

Canegrowers chief executive Ian Ballantyne says rationalisation is "the golden thread touching all parts of the sugarcane industry" at the moment, from deregulation and the restructure of marketing arrangements to ongoing review of most of the institutions which service the industry.

And he says the trend will of tightening of the belt will continue.

"The sugarcane industry's ongoing turbulent period has seen the number of growers drop from over 6000 to under 4000 in five short years," Mr Ballantyne said.

"The industry has been though a period of poor growing conditions and low returns, which has weighed heavily on our grower's bottom line, and is compounded by the profit-eroding high Australian dollar and spiralling fuel, fertiliser and other input costs.

"This has led to a contraction of land available to cane growing, putting pressure on production and paving the way for alternative uses of land.

"The swing towards everything from hobby farming to trees to diversification into alternative crops is being felt across the industry - and this is no less evidenced in the Mackay area."

Mr Ballantyne points out the industry is not making blindfolded decisions and "the Mackay consolidation has been persued only after a great deal of consideration".

"The concern of farmers is primarily directed at the hope for improved growing conditions and the recovery of production," he said.

"If these factors come together and better marketing conditions come into play, the remaining three Mackay mills could come under pressure in processing future crops.

"Mackay Sugar needs to ensure that it is able to handle these types of changes and allay grower concern about the remaining mill’s ongoing capacity to handle the crop in a reasonable timeframe."