Regional Examples – Major Parameters

Introduction

FEAT Online provides access to pre-loaded regional scenario example files which are provided to help users in understanding how the tool functions and generalised sugarcane economics. This page outlines the method of estimation for each of the scenario major parameters, with all figures excluding GST.

It is important to note that the parameters used (operations, input costs, yields, etc.) are examples only, are not intended to provide average or median values for each region and are not reflective of any individual situation.

In 2021-22, the regional scenario example files were updated (having regard to regional production data and consultations with regional advisors).

Operations and Products Applied

For a high level of detail on the operations and products applied in each of the regional scenarios, see below:

• Burdekin (BRIA)
• Burdekin (Delta)
• Bundaberg
• Mackay
• Herbert
• Tully

Major Parameters

Scenario Assumptions

Parameter	Value	Range of years used and data source
Mill area	See below table.	Mill area corresponds with mill constant to calculate revenue.
Sugar Price	$484/t (IPS Net).	Five-year (2018-2022) average.
Row Width	See below table.	Widths vary between regions.
Cane Contract Harvest Cost	See below table.	Costs vary within regions (between contractors) and are based on local advice. Estimate includes haul-out and fuel cost (after rebate) during 2020-2022.
Tractor Fuel Price	$1.50/L (after diesel fuel rebate, and the removal of GST).	Diesel prices based on three-year (2020-2022) average (reported by RACQ across multiple regions). Rebates were deducted based on a 3-year (2020-2022) average of Australian Government fuel excise values. GST was also deducted.
Levies	See below table	Total levy costs are sourced from relevant industry bodies and will vary depending on a grower’s membership in various organisations.
Premiums	See below table.	Premiums and/or bonuses paid (if relevant) to growers will vary from year to year.

See below table for further information on parameters by region.

Region	Mill Area	Row Width	Cane Contract Harvest Cost	Levies
Burdekin (BRIA)	Pioneer Mill	1.6m	$7.3/t	$1.012/t
Burdekin (Delta)	Kalamia Mill	1.6m	$7.3/t	$0.982/t
Bundaberg	Bundaberg Mill	1.83m	$7.3/t	$1.069/t
Mackay	Mackay Mill	1.625m	$9.5/t	$0.91/t
Herbert	Herbert River Mill	1.65m	$9.5/t	$0.99/t
Tully	Tully Mill	1.65m	$9.0/t	$1.04/t ^

^ A premium/bonus of $1.88/t is also specified (example only), that incorporates two types of bonuses/premiums for the Tully scenario.

Cane Assumptions

Farm Size

The same farm size was used in all scenarios (150ha) and is evenly split between crop classes (fallow, plant, and ratoons). However, the area for each crop class differs between regions as the number of ratoons varies.

Yield and CCS

Cane yield and CCS was determined using available historical average data for each scenario. The aim was to include a 10-year average from 2012 - 2021 but there were differences between scenarios (due to data availability). The production data only reflects the crop classes included in each scenario (excluding standover cane), and therefore yields may be higher than regional averages.

Region	Number of Ratoons	Plant Yield (t/ha)	Ratoon Yield (t/ha)	Plant CCS	Ratoon CCS	Range of years used and data source
Burdekin (BRIA)	3	137	105	14.5	14.73	2010-2019, QCANESelect for BRIA, Dalbeg/ Millaroo, Clare, Giru.
Burdekin (Delta)	3	149	116	14.2	14.33	2010-2019, QCANESelect for Ayr, Home Hill.
Bundaberg	4	90	81	14.21	14.21	2015-2019, Bundaberg Sugar Ltd, may be adjusted to reflect the water available for irrigation and may differ from the regional average.
Mackay	5	96	85	14.40	13.72	2012-2021, Mackay Sugar Limited, adjusted to reflect the water available for irrigation and differ from the regional average.
Herbert	5	94	76	14.00	13.56	2009-2018 (excl. 2011 data due to cyclone impacts in that year), QCANESelect.
Tully	5	95	86	13.30	13.00	2012-2021, Tully District CAPA Productivity Review.

Growing Costs for Cane and Other Crops

Planting

For cane, the price of cane billets used for planting (seed cane) is equivalent to the on-farm price of cane.

Nutrients and ameliorants

The specific fertilisers included, that were determined by local and industry advice, varies from region to region.

Product costs and descriptions

The specific products and costs included were determined by local and/or industry advice, and vary between regions. Note: for simplicity, herbicide blends are specified as a cost per spray per hectare (incorporating product mixes and additives). Descriptions are followed by specifications of rates of product in Kg or L. For example, Starane Advanced [0.6] would refer to 0.6L of product. Active ingredient strength is sometimes specified as part of the product description. For example, 2,4-D 700 would align with 2,4-D Amicide Advance that has 700g of active ingredient per L of product.

Machinery

Tractor fuel price

Diesel price of $1.50/L based on three-year (2020-2022) average (reported by RACQ across multiple regions). Rebates were deducted based on a 3-year (2020-2022) average of Australian Government fuel excise values. GST was also deducted.

Casual labour cost

It is assumed that all tractor work (and irrigation) is done by an owner-operator, so the cost is included as a fixed cost (see Fixed Labour).

Percentage of full load, speed and field efficiency

Estimated based on local advice, influenced by type of operation (i.e. tilling, spraying, planting etc) and soil type. Field efficiency is influenced by; time taken to perform adjustments to machinery, time to add seed/fertiliser, minor breakdowns, turning at row ends and other non-productive delays.

Repairs and maintenance

Based on the sum of the major repair and maintenance components for the tractor or implement (i.e. maintenance and replacing components, including oil, tyres, batteries, discs and nozzles) expressed in dollars.

Irrigation

Water rates

Water rates are estimated in each region for plant, ratoons and fallow based on local advice.

Region	Unit	Fallow	Plant Cane	Ratoon
Burdekin (BRIA)	ML/ha	3	15	12
Burdekin (Delta)	ML/ha	2.8	18.9	16.1
Bundaberg	ML/ha	2 (Soybean) 4 (Peanut)	4	4
Mackay	ML/ha	1	2.5	2.5
Herbert	ML/ha	-	-	-
Tully	ML/ha	-	-	-

Energy costs

Electricity for irrigation is applied under Tariff 20. Electricity tariffs are sourced from Ergon Energy for 2021/22. A fixed daily supply charge for electricity (irrigation) is also applied as per tariffs.

Electric pump

Electricity for irrigation is applied under Tariff 20. Electricity tariffs are sourced from Ergon Energy for 2021/22. A fixed daily supply charge for electricity (irrigation) is also applied as per tariffs (see Fixed Costs).

Diesel pump

The scenarios only include electric pumps. However, if you have a diesel pump, the pump fuel use (L/hr) can be used, along with the ‘Tractor Fuel Price’ (see Machinery section), to calculate the energy cost per year ($/yr).

Fixed costs

General

Fixed costs were determined using generalised averages and assumptions for each region based on past research and local knowledge or advice. These costs were applied on either a per hectare basis or a percentage of income. Please note that fixed costs vary between farming enterprises and these values should be customised for your own situation.

Fixed labour

Farm labour requirements estimated from local knowledge and advice. Fixed yearly labour is estimated at a rate of $35 per hour.

Fixed irrigation

Water charges are sourced from the supplier based on the appropriate water scheme. A fixed daily supply charge for electricity (irrigation) is also applied under Tariff 20 from Ergon Energy 2021/22.

Terms and Conditions

Access to and use of the information contained herein is subject to the reader’s/user’s acceptance of the Farm Economic Analysis Tool Online (FEAT Online) terms and conditions and the reader’s/user’s creation of an account for FEAT Online. The information contained herein is subject to change without notice. The Queensland Government shall not be liable for technical or other errors or omissions contained herein. The reader/user accepts all risks and responsibility for losses, damages, costs and other consequences resulting directly or indirectly from using this information.

Disclaimer

The information contained herein should not be regarded by the reader/user as a substitute for expert advice. The reader/user accepts responsibility for determining whether the information contained herein is suitable for the reader’s/user’s own use or purpose. The reader/user accepts that the information contained herein must not be used or relied upon by the reader/user for any purpose which may expose the reader/user or any other person to loss or damage. The reader/user accepts that the reader/user must conduct the reader’s/user’s own inquiries and rely on the reader’s/user’s own independent professional advice. For example, and without limitation, to determine whether any of the costs, machinery, operations, products, operations and irrigation systems mentioned within the information contained herein are relevant and suitable to adopt for the reader’s/user’s specific situation:

• the reader/user should conduct the reader’s/user’s own inquiries and rely on the reader’s/user’s own independent professional advice including, but not limited to, legal, commercial, and financial advice that is based on the reader’s/user’s specific circumstances; and
• the reader/user should seek independent professional agronomic advice that is based on reader’s/user’s specific circumstances and local, farm-specific data including, but not limited to, soil test results, Nitrogen and Phosphorous Budgets, Nutrient Management Plans and product label information.