NORTHERN MPs are pushing for limits on molasses exports after MSF Sugar advised it would be sending most of its production to Thailand this year.
The Thai owner of South Johnstone Mill near Innisfail, which also makes molasses from cane supplied to its mills at Gordonvale and Mareeba mills, said it would only sell molasses produced during the 2020 crush to cane farmers who supplied their mills, but no one else.
Federal Leichhardt MP Warren Entsch said it was a blow to the northern beef and dairy industries, which relied on the high energy by-product to bolster livestock diets.
"MSF's decision beggars belief and once again highlights the fact they have absolutely no interest in supporting Australia's agriculture sector," Mr Entsch said.
"Ongoing molasses supply is critical to the dairy industry and more broadly is used as a binding agent for feed stocks and supply chains across the pastoral sector.
"This is just another example of a foreign-owned company giving the middle finger to Australia."
This is just another example of a foreign-owned company giving the middle finger to Australia.
- Warren Entsch
In a letter to non-farmer suppliers Mitre Pohl executive vice president - international sales, Ali Dharamsey, said due to a change in business operations, MSF Sugar was no longer in a position to supply bulk molasses from its mills from the 2020 season.
"We understand this will affect your operations and regret the inconvenience," the letter reads. "We thank you for your valued patronage and will advise if our position changes in the future."
A furious Senator Susan McDonald said foreign investment laws needed to ensure Australian needs were prioritised ahead of exports, particularly during pandemic and emergency situations.
"I believe in foreign capital and investment but part of FIRB (Foreign Investment Review Board) approval must be that Australian businesses come first and agreements, including customary agreements, with Australian farmers must be honoured first," Senator McDonald said.
"Foreign investment is important in agriculture, but we can't forget it's got to be in our national interest. We shouldn't apologise for that, other nations don't.
"While there is no law against MSF exporting all its molasses, it certainly contradicts Australian values.
"Many Australians are already suspicious of foreign acquisitions and this is the reason why.
"If farmers don't get molasses this year, it will push many of them to the wall."
Comment has been sought from MSF Sugar.
