The State Government has agreed to contribute up to $365,000 to help develop an expanded commercial sugar industry on the Ord, including up to $230,000 for detailed feasibility work.
Agriculture Minister Ernie Bridge said extensive crop trialing of sugar cane on the Ord had indicated huge potential for the industry. Small-scale commercial milling of cane had already commenced, after the purchase by local growers earlier this year of a micro sugar mill.
"We are now at a stage where further detailed examination is required before growers can look to further expansion to achieve a significant new export industry for Western Australia," Mr Bridge said.
The micro mill now being used on the Ord has a crushing capacity of 80 tonnes of cane a day, and Mr Bridge said the next step was a `mini mill' with a crushing capacity of 2,000 tonnes a day.
The Minister said local growers, through the Ord River District Co-op, had invested more than $500,000 to date on developing a sugar industry.
They had also invested more than $760,000 building a new storage facility at Wyndham suitable for holding sugar.
"It is appropriate that the Government provide assistance for the next stage of the project, bearing in mind that a successful outcome would have ramifications for the whole economy," Mr Bridge said.
"Ord growers have shown their willingness to shoulder very large costs in developing the industry so far, and have proceeded in a very sensible way by conducting detailed investigations before embarking on each new stage."
The forthcoming feasibility work would consist of detailed plant drawings, in conjunction with a process design audit on the plant to confirm operating efficiencies which have so far only been estimated from other models.
Co-op chairman Dr George Gardiner said the results would be crucial to facilitating the location and commitment of equity investors.
He welcomed the Government's involvement in the project, which has also included substantial work by the Department of Agriculture building up cane stocks for farmers.
Mr Bridge said the Co-op would contribute $115,000 to the $345,000 feasibility project, and discussions were underway with the Federal Government to see if it might also contribute, due to the national significance of a new export industry.
The remaining $135,000 of the Government's $365,000 commitment had been allocated to the cost of the Wyndham storage facility.
Mr Bridge said the development of an extensive sugar industry, including value-added processing, would further diversify the region's economic base, and directly create about 100 jobs in the area, with an additional multiplier effect for the region. It would also enhance the financial operation of the port of Wyndham as most of the sugar would be expected to be exported.
While the world sugar industry was well-known for its volatility, Mr Bridge said consumption of sugar in the strategically attractive South East Asian region was growing rapidly.
