The grower group's chief executive, Ian Ballantyne, says there is an opportunity for growers to capture improved sugar prices, with prices in 2009/2010/2011 currently hovering around the $400 a tonne mark – around $100/t more than the returns secured for the 2007 crop and foreshadowed for 2008.

"We now have international forecasts of a deficit in production for 2009 as India comes off its production surge and Brazil focuses on ethanol," Mr Ballantyne said.

"Consumption continues to increase, which is in no small way due to strong growth in south-east Asia."

Canegrowers said growers should consider long-term pricing options for part of their production in line with the strengthening futures market.

"We are seeing the best outlook for a number of years and have the best opportunity to secure those prices – but the window is closing," Mr Ballantyne said.

"The opportunity for most growers to commit to longer term hedging into the 2009 season will close soon."

But he warned that a number of the milling companies "need to improve performance if growers are to have confidence to commit future production".

"Having said that it is encouraging to see the milling sector starting to rationalise – after lagging well behind other sectors of the industry," he said.