KAP Federal Member for Kennedy, Bob Katter, has delivered an urgent warning to Australia’s Prime Minister that without immediate intervention, rocketing fuel costs and unresolved supply shortages are critically threatening the viability of Australia’s sugar industry now and into the future.
In urgent discussions with the PM about the unfolding threat hanging over the iconic North Queensland industry, while Australians reconsidered their travel plans heading into Good Friday, Mr Katter emphasised the escalating concerns of local cane growers and industry more broadly through representations by Queensland Cane Agriculture and Renewables – warning the 2026 sugar harvest is now at serious risk.
Australia’s sugar industry generates over $2 billion in annual export earnings, with the manufacturing sector valued at approximately $3.9 billion. The industry, largely based in Queensland, crushes around 30 million tonnes of cane to produce more than 3.5 million tonnes of raw sugar annually.
The Far Northern cane industry, a significant part of it located in Katter’s electorate of Kennedy, is worried there will be insufficient diesel supplies to get through the harvest beginning in June and running through to December.
“Sugar is a multi-billion-dollar export industry underpinning regional Australia, and it is now under threat,” said Mr Katter. “Australia’s sugar industry requires around 100 million litres of diesel this season. Right now, farmers can’t get it or can’t afford it.”
In writing further to the PM and Australia’s Treasurer and Energy Minister, Mr Katter noted that:
- surging diesel prices (from $1.70/litre in early March to nearly $3/L by April) added more than $2.50 per tonne to production costs;
- supply delays of up to two weeks were being reported, with some farmers considering hauling machinery to service stations just to stay operational.
“This is pure idiocy that in a country so rich in resources, our farmers are lining up like we’re some sort of developing nation,” he said in further pointing to input costs digging farmers deeper into the global crisis including the near-doubling of fertiliser prices – with urea alone spiking from $900 to $1700 per tonne to add tens of thousands of dollars in costs for individual growers.
With sugar prices at about $46 per tonne and production costs now exceeding $58 per tonne, farmers are losing about $12.50 on every tonne produced. “This is simply unsustainable and it’s catastrophic for our sugar guys,” said Mr Katter. “Every tonne harvested is a loss. Every farmer is going to go backwards.”
Mr Katter also criticised the lack of transparency from the Federal Government regarding its plan for fuel security in the short-term – warning that regional industries have been left in the dark. “We are being told there are stages, allocations, even rationing… but no one can tell us when, how, or who decides,” he stated.
In ongoing discussions with the Prime Minister’s Office, Mr Katter has directly called for:
- 100% temporary fuel excise relief for critical industries not limited to primary industries;
- guaranteed fuel prioritisation for agriculture ahead of the cane-crushing season;
- full disclosure of Australia’s fuel reserves and supply risks; and
- immediate, direct communication with all agricultural stakeholders.
“If we cannot harvest and process our own crops, all Australians will pay for it at the checkout. This is about food security, jobs, and the survival of Australia,’ he said.
