EXCLUSIVE: Devastating blow as Mossman Mill in voluntary administration, future unknown

DEVELOPMENT

David Gardiner

Journalist

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Has the sun set forever on the Mossman Sugar Mill? The companies that run the mill and neighbouring bio precinct have been placed in voluntary administration. Picture: James Philip/Far Northern Milling

It is news that might take few by surprise, but will be devastating for many in the Douglas region and beyond.

A short time ago, Newsport was given first-hand information that after board meetings this morning, staff and growers were informed that the Mossman Sugar Mill and its attached businesses have been placed into voluntary administration.

The move will possibly have devastating effects on the Mill’s employees, growers, and the region generally.

“The holding company DBP (Daintree Bio Precinct Ltd) has met today and have sent a notice to growers that the board will be putting the companies into voluntary administration and appointing an Administrator,” a source close to Mill revealed. 

It’s believed that the Cairns office of national liquidator firm, Worrells, has been appointed.

Over the next 30 days, the administrator is likely to closely examine the financial status of the companies that run the Mill and bio precinct and ascertain any possible future viability, and whether there will be a 2024 crushing season.

Part of this might also involve seeking a financial ‘rescue package’ from the state and federal governments, to keep the operation from closing down altogether.

Comments sought

Newsport has sought comment from Daintree Bio Precinct – the parent company of Mill operator Far Northern Milling Pty Ltd – CEO Bronwyn Dwyer, but at time of publishing, had not received a response.

However, as Editor Michael Warren reported just a week ago, there were signs the Mill would be placed into administration or similar, after comments in a letter from Chairman Rajinder Singh to stakeholders of the Mill and bio precinct stakeholders.

“The viability of the Mill for the 2024 season can no longer be assured,” was one of the statements made in that correspondence. 

Mr Singh further suggested at the time that given the ongoing uncertainty of next year’s season “that growers should strongly consider their farming and operational expenditure beyond November 10”.

Mr Singh also revealed a number of reasons as to why next season’s crush may now not proceed, including a reduction in 1) “actual crop tonnage as against that which was forecasted at the beginning of the 2023 season”, 2) “significant reduction in actual CCS as against that which was forecasted at the beginning of the 2023 season”, 3) “extended cane supply stoppages” and lastly less than ideal weather conditions. 

“We continue to work with our advisors in respect of the financial position of the company, and the viability of the Mossman Mill moving forward,” Mr Singh wrote in his correspondence.

In operation since 1896, Mossman Mill crushes cane supplied by about 140 local growers. 

Crushing typically runs for five months from June to November, with maintenance performed during the rest of the year.

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