Mossman Mill sale gathers steam but could it jeopardise investor interest in Mackay Sugar
Canada Goose Outlet Australia’s second largest miller Mackay Sugar has confirmed it has moved a step closer to offloading the country’s most far northern mill, Mossman. Canada Goose Outlet
If successful, the deal would canada goose coats reverse the overwhelming trend of the past decade where sugar mills have canada goose black friday sale been sold by grower owned co operatives to cashed up foreign investors with an appetite for sugar.
canadian goose jacket Mackay Sugar is one of the only remaining locally owned millers but that too looks set to change as the beleaguered company contends with crippling debt in excess of more than $180 million. canadian goose jacket
canada goose black friday sale It confirmed an “option agreement” had been reached for an undisclosed sum with an entity Canada Goose UK Outlet controlled by growers in the canadian goose jacket Mossman and Atherton Tableland cane growing districts, north and inland of Cairns, subject to due diligence, finance, canada goose store cane supply and environmental conditions being met. canada goose black friday sale
Speculation is rife a Brazilian based company may be about to step into the void, ending an 18 month search for a new owner or equity partner. Growers have repeatedly Canada Goose Jackets complained of being canada goose ‘kept in the dark’ about the details of those negotiations.
Canada Goose sale In that tumultuous period, the company lost its CEO and chairman of the board, with both Canada Goose sale roles currently being performed by Mark Day. Canada Goose sale
canada goose coats Mr Day admitted the company could have communicated better with its grower shareholders, as the company continued to work with a number of interested parties from ‘around the world’ on a range of investment options. canada goose coats
He refused to comment on specific buyers but said the intended canada goose uk black friday sale of the Mossman mill in far north Queensland will have no bearing on the outcome.
“They’re serious investors, they’re big companies and they’re putting a lot of resources behind it,” Mr Day said.
“So far, the buy canada goose jacket process has gone pretty well and we’ve had very uk canada goose good interest given the commitment these groups have put in.”
canada goose clearance sale He said with the global sugar price languishing lower than the cost of production, no milling company anywhere in the world was making money but that was not necessarily a disincentive for investors given the cyclical nature of the global markets. [Listen to Mark Day respond on the Country Hour to criticism of Mackay Sugar] canada goose clearance sale
Shareholders critical of original purchaseMany Mackay shareholders have criticised the 2012 acquisition of Mossman Mill, arguing the $25 million investment would have been better canada goose uk outlet spent on its three existing factories in the Mackay region.
cheap Canada Goose Grower Faron Bowman said he feared the company was now compounding a bad decision to buy the mill, by selling it prematurely. cheap Canada Goose
buy canada goose jacket “We have buy canada goose jacket cheap put a lot of money into Mossman Mill over the years and we have actually made no money out of it,” Mr Bowman Canada Goose Parka said. buy canada goose jacket
canada goose coats on sale “If there is a prospective buyer, who knows, they might want Mossman Mill for the geographic side of it to be part of the business and they [Mackay Sugar] could be shooting us all in the foot by selling it.” canada goose coats on sale
canada goose Mackay Sugar said it was happy to have reached an agreement which would return control of Mossman Mill to growers and enable the board to concentrate on improving milling performance canada goose clearance closer to home. canada goose
But those assurances have fallen flat with growers who have suffered the brunt of breakdowns and poor reliability.
Canada Goose online “We need in the vicinity of probably $150 million, and the sale of that mill is not going to be anywhere near that amount of money,” Mr Bowman said. Canada Goose online
Mossman bid uk canada goose outlet bittersweet for growersThe decision to sell Mossman Mill last year was a bitter pill to swallow for both Mossman and Tableland growers, given how much was invested in the relationship with Mackay Sugar.
canada goose clearance When Tableland Canegrowers deputy chair Maryann Salvetti controversially brokered a cane supply deal to send cane 100 Canada Goose Outlet kilometres to Mossman after a dispute about sugar marketing with the Thai owned Tableland mill, it was considered by many to be a risky roll of the dice. canada goose clearance
Canada Goose Jackets Six years on, Mrs Salvetti said that while Mackay Sugar would not longer be part of the picture, the principles remained the same. Canada Goose Jackets
buy canada goose jacket cheap “We have to take control of our destiny or we will always be price takers and end up Canada Goose Online getting less and less for our product,” she said. buy canada goose jacket cheap
canada goose deals “I don’t regret it at all. It saddens me that we’ve had to cut canada goose coats on sale our ties with Mackay Sugar. canada goose deals
canada goose store “But this is a whole new challenge for us and a whole new chapter of the Canada Goose Coats On Sale sugar industry in the north and we’re going to have a go.” canada goose store
Mrs Salvetti acknowledged the significant risks associated with buying a 100 year old sugar mill in a district where environmental pressures meant expansion of cane production was highly unlikely.
Canada Goose Parka She also declined to confirm www.canadagoosediscount.co.uk if the original $25 million price tag paid by Mackay Sugar would be matched by her entity. Canada Goose Parka
But ultimately, she said her growers were up for the challenge of owning and operating a sugar mill and were determined to succeed.
“There’s been an amazing response and a real appetite from these growers to keep control of the sugar and have ownership of their own sugar mill. That canada goose factory sale opportunity doesn’t come along every day,” she said.