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Meeting the market challenge
By Urquhart, RM; Atkins, PC; Metcalfe, GM
For many years, Queensland has enjoyed the advantages of preferred supplier status in
many of its markets. This status was gained by meeting customer expectations in the
key areas of consistent high quality raw sugar, reliability of delivery, and year round
supply. Today, major competitors are improving the quality of their raw sugar and their
supply logistics. To meet the challenge, Queensland continues to improve its supply
logistics. In recent years, harbours have been deepened, and the wharf facilities at
Townsville and Mackay upgraded to take panamax size vessels (about 60000 tonnes).
To improve year round supply the industry is assessing the construction of additional
storage capacity. However, the most significant challenge for Queensland today is in
raw sugar quality. Brazil's expansion, and the aggressive marketing of its very high
polarisation sugar, has resulted in the loss of some markets and a challenge to our
market share in others. Queensland has commenced work on cost effective ways of
producing a much higher grade of sugar than its current Brand 1. During the next year
or two, the industry must implement a production plan for this sugar which enables it to
meet the challenge from Brazil in the marketplace.