The economy of Mossman in far north Queensland could collapse if the state government does not step in and save the region's largest employer.
Canegrowers Mossman chairman Matt Watson said he was calling on the state government to look to the future by stepping in to underpin the immediate survival of the Daintree Bio Precinct which employed 130 people full-time and indirectly supported 500 jobs in the region.
Mr Watson said he believed sensible action by the state government could save the town's economy from collapse, as the flow-on effect would be terrible for the region which was still recovering the damage caused by TC Jasper and ex-TC Kirrily.
"The sugarcane industry and bio precinct are responsible for so much employment in the area that if they go, the town's economy will be devastated," Mr Watson said. .
"This isn't about saving one group of businesses or one industry, it's about the flow-on effect. It's about the survival of our community and the families that live here.
"We are all interlinked, and the collapse of the sugarcane industry will have a catastrophic knock-on effect on the whole community.
Mr Watson said the Minister for Agricultural Industry Development and Fisheries, Mark Furner, had been heavily engaged on the topic and told industry leaders on February 21 the government had yet to decide whether it would step in to save the small far north community.
"We're asking the minister and the cabinet to take decisive action to save our town. If the government turns its back on us now," he said.
"(Otherwise) there is a very bleak future ahead for our region."
Canegrowers Queensland said a few hours after their meeting with Mr Furner, the precinct administrator handed down his report which recommended to creditors the company be "wound up".
"As this recommendation will go to a vote at a creditors' meeting on February 29, so there is still time to find a better solution," Mr Watson said.
The local Australian Cane Farmers Association representative Jack Murday said they we working with Canegrowers, community, industry, and government stakeholders to find a solution that will secure the future of the region's sugarcane industry and the community.
"We're not asking the government to prop up an industry here," Mr Murday said.
"Together, the sugarcane industry and bio precinct have the potential to carry this region into a new and exciting era, but only if we can complete the transition we began in 2019.
"Growers have already invested heavily in the 2024 crop, spending more than $14 million this year alone. And we're willing to invest more. We just need a partner with the means and the vision to realise the potential we have here in Mossman."
Douglas Shire Council outgoing mayor Michael Kerr said the news was "disastrous" for the region.
"It's essential we look at all options to ensure the economic survival of the sugarcane industry in the region and across Queensland," Mr Kerr said.
"The options on the table by Licella Holdings and Helmut Industries, two well-respected internationals companies to produce bio-diesel and energy needs to be given the option to deliver on the good promised through the Mossman Mill.
"Canegrowers are working with DAF and the minister is yet to make an announcement if assistance for the next two years will be given or not."
Mr Kerr said there were hundreds of jobs were in danger of being lost if the precinct closed for good.
"At least 500 jobs which indirectly rely on the DBP will be impacted, the flow-on effect will be dipterous," he said.
"Many local tradespeople work for the business and they have families who work in the shops and their children go the local school."
Mr Kerr said the two potential global partners had indicated they were keen to invest in the DBP.
"But they need an assurance from the state government it will support their endeavours to distribute the product to diesel industries."
Mr Kerr said troubles began for the precinct during the pandemic and they had challenges attracting staff due to the region's housing shortage and then the area was impacted by TC Jasper.
"But the precinct is now at stage where it's got a really viable product," he said.
"When they have got so far it should be supported, sugarcane is the only crop we can grow here.
"It's not about not bailing them out but investing the sugarcane in Queensland, so if its successful all the mills can invest and have another revenue stream for the industry.
DAF response
A spokesperson for Minister for Agricultural Industry Development and Fisheries and Minister for Rural Communities Mark Furner said he understand the administrator's recommendation that Far Northern Milling, the company that operates Mossman Mill, be placed into liquidation.
"The administrator will continue to seek the best returns possible for creditors. I encourage any interested parties to engage with the administrator as soon as possible," the spokesperson said.
"I recognise the significant impact that the closure of the mill would have on the growers, mill workers, local businesses, and the broader community (and) the Queensland government will work closely with the Mossman community to provide support through this difficult process.
"The Government's response to these developments is under careful consideration and we hope to be in a position to announce that response next week."
He said the state government had provided $22 million in support to Far Northern Milling and related entities since 2019.
Administrator to hold crediting meeting
According to a statement on the website of insolvency firm Worerlls, on 20 November 2023, their Cairns office principal John Goggin was appointed administrator of the following companies that comprise the Daintree Bio Precinct Group; Daintree Bio Precinct Ltd, Far Northern Milling Pty Ltd t/as Mossman Mill, Far Northern Infrastructure Pty Ltd; and . Daintree Bio Enterprises Pty Ltd.
"The administration process is in its infancy and we are working hard to immediately establish the group's financial position, including options for the future of the respective businesses and quantifying creditors' claims, with the assistance of the directors and the senior staff," Mr Goggin said in an online statement,
"We are conscious of the impact the appointment will have on everyone involved and the wider Mossman community."
Know more about this issue? Contact Alison Paterson on 0437 861 082.
