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Oil lubricates sugar's recovery
28 Oct 2004
The rise in the price of oil has helped restore the outlook for sugar farmers. Over recent weeks, world sugar prices have passed the US9c a pound mark, almost double the level in 2003, while the dry weather that's upset many other farmers has improved the yield on farms.
Australian canegrowers are also benefiting from the diversion by Brazil of its sugarcane into ethanol, a petrol substitute. The turnaround in fortunes for cane farmers has resulted in only 18 growers taking up the federal Government's offer of $100,000 to leave the industry. Canegrowers general manager Ian Ballantyne said "although the situation is by no means buoyant, farm returns are generally improving and short-term prospects are far better than they were at the start of the year".
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