Australian sugar industry response to water price increases.

Book Title: NA
Year Published: 2006
Month Published: NA
Author: Danzi, E.
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Abstract:

The Australian sugar industry has come under significant pressure in recent years as a result of low sugar prices and an increase in the cost of oil and water. National Competition Policy in Australia has overhauled many sectors of the Australian economy, including the electricity, water and transport sectors, in an effort to increase competition and eliminate subsidization. The water policies being implemented in Australia due to National Competition Policy are highlighted in this paper. Water prices for many Australian cane growers have doubled. The paper shows some impacts of water policies on the Australian sugar industry, including how the policies are jeopardizing the viability of growing sugarcane in many regions. Increases in water prices were compared with overall business costs and the profitability of sugarcane growers in Australia. The response from the industry has been to argue for fair and justifiable water prices that do not unjustly put growers out of business. Also, there has been a massive campaign through the Water Use Efficiency programme to increase the efficiency of irrigating sugarcane. This has led to financial incentives being offered to improve farm practices including purchasing new centre pivot irrigation systems. Consequently, there has been a marked improvement in irrigation efficiency that has allowed growers to better cope with the higher water prices.

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DOI: NA
Keywords:

costs, irrigation, irrigation systems, prices,profitability, sugar industry, sugarcane, water policy, Australia,Saccharum, Saccharum officinarum, Australasia, Oceania, DevelopedCountries, Commonwealth of Nations, OECD Countries, Saccharum, Poaceae,Cyperales, monocotyledons, angiosperms, Spermatophyta, plants,eukaryotes, costings, water consumption, watering, AgriculturalEconomics (EE110), Natural Resource Economics (EE115) (New March 2000),Policy and Planning (EE120), Field Crops (FF005) (New March 2000), SoilWater Management (Irrigation and Drainage) (JJ800) (Revised June 2002)[formerly Soil Water Management]

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