In the late 1990s, declining w o r l d sugar prices and declining productivity combined to threaten the profitability of the M o r e t o n Mill at Nambour, in the Maroochy Shire (Figure 4- 1). Established in 1893, this mill was o w n e d and
operated by Bundaberg Sugar Ltd., and was supplied by cane g r o w n in the surrounding areas of the Maroochy Shire and Caloundra City. An additional 2,504 ha of land was assigned to cane production following changes to the Sugar Industry Act in the 1990s, taking the available cane land f r o m 7,334 to 9,838 ha. However, this apparent expansion was offset by other losses, so that only 485 additional ha actually contributed to the harvest. With the prevailing sugar prices in the late 1990s, the production of approximately 350,000 - 650,000 tonnes of crushed cane was inadequate to sustain the profitability of the mill. However, growers and millers believed that increasing the a m o u n t of cane crushed w o u l d enable the mill to regain viability. Selecting land suitable for expansion of cane g r o w i n g was a challenge because the invasion of urban and rural-residential developments had caused cane land to become fragmented and isolated from the mill. The key questions were, therefore: where w o u l d cane g r o w well enough to be profitable, and could it be delivered f r o m these new locations to the mill cost- effectively?
Using funds f r o m the Sugar CRC, researchers at the CSIRO were developing ideas to improve the process of natural resource-use planning in the sugar industry. The challenge facing the M o r e t o n Mill provided an o p p o r t u n i t y to apply some of these ideas, while at the same time, providing practical assistance to the industry. Land and Water Australia (LWA) and the Sugar Research and Development Corporation (SRDC) also provided financial support for the project. It was important to the mill that its operations were not open for inspection or negotiation, so the initiative was limited to operations outside the mill gate, including cane land, transport and the grower/miller interface.
Within their o w n ranks, the growers were connected t h r o u g h the CANEGROWERS organisation that provides growers w i t h representation, communication and information dissemination t h r o u g h meetings and its regular newsletter. The interactions between the mill and the growers were restricted to negotiations w i t h the Mill Suppliers' Committee.
This committee brokered determinations of cost- and profit-sharing between the mill and the growers, in particular, related to cane harvesting and hauling or transportation.
The key challenges faced by participants in m o v i n g forward included: poor communication between growers and millers; low levels of engagement amongst the industry and state government, local government, and the c o m m u n i t y ; in some cases, mistrust of the industry by local and state governments and c o m m u n i t y sectors; inadequate information about
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prospects for the future in terms of pressures and options; and substantial disagreement about the implications of the available information.
Figure 4-1 The Moreton Mill sugar-cane growing region (CSIRO, 2000).
4.3.7 Engaging stakeholder involvement in planning
The Sunshine Coast initiative focused on developing a stakeholder-driven approach to resource-use planning to promote the viability of the Moreton Mill. This approach was used in response to the challenges posed by communication issues within the industry, different views about h o w the industry should develop (including strong views by some that it should not) and to enable stakeholders to actively participate in planning processes.
It emphasised communication of aspirations, negotiation of mutual understanding of their implications, and using a broad range of data and analytical tools to inform emerging plans.
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REGIONAL PLANNING AND THE SUGAR INDUSTRYThe approach to resource-use planning adopted here was based on a series of Resource Use Futures meetings (Figure 4-2). At these meetings, key stakeholders came together to negotiate and renegotiate aspirations and actions on the basis of g r o w i n g information. The framework involved a series of steps (not necessarily applied in a strict sequence, b u t involving several iterations) as summarised in Box 4 - 1 .
Figure 4-2 The conceptual framework for the participatory planning process used in the Sunshine Coast area initiative.
Box 4 .1 Steps in the planning process.
Step 1. Negotiation of resource-use aspirations within the industry. One of the aims of this initiative was to assist the sugar industry and other relevant stakeholders to plan for future development of natural resources used by the industry. This was to be achieved by a series of 'plan-to-plan' workshops and Resource Use Futures Forum meetings, which thrashed out aspirations for the industry that might be acceptable to all stakeholders.
Step 2. Assessment of the resource base in relation to aspirations. The biological, physical, financial, social and human capital that the industry has at its disposal determine the extent to which aspirations are achievable. Some of the types of analyses described in Chapter 5 were used to support this assessment.
Step 3. Dialogue with other key stakeholder groups. The framework was structured to accommodate the increasing number of stakeholder groups that had an interest in natural, social and economic capital used by the sugar industry. To be as flexible as possible, it included stakeholders and organisations in a progressive process. Once the groups already involved saw a need and had sufficient confidence and information, new groups were drawn into the process.
Such inclusive participation, requiring dialogue and negotiation, was seen to be critical for successful strategic planning and implementation
Step 4. Integrated consideration of economic, social and environmental impacts.
One of the key intentions of this initiative was to seek improved integration of the economic, social and environmental implications of resource-use. For example, land suitability and rainfall models were developed with specific consideration of environmental impacts, while a transport model was developed to determine the economic and social implications of changes to the transport system, as well as the needs of the sugar industry (see Chapter 5).
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Box 4 .1 (continued)
Step 5. Principles for resource-use plans - How to... rather than what to... The framework was based on the view that resource-use planning needs to be highly participatory and responsive to the ever-changing operating environments of the industry and the community. While strategic planning needs to be achieved through debate, negotiation and consensus across a broad range of sectors and stakeholder groups, implementation of elements of the plan will occur in a less integrated way as each sector meets its individual needs through conducting their core business. As a consequence, the framework focused on developing consensus on principles for design of future resource-use strategies rather than the development of rigid and formal planning outcomes.
Step 6. Seeking effective implementation. The approach taken in this initiative involved collaborative decision-making, establishing trust by building relationships between participants, and enhancing communication between industry, government and community representatives. All initiatives and analyses were agreed to and supported by stakeholders. The process and analytical framework have ensured that all decisions were made according to the needs of stakeholders.
This provides a robust foundation for successful implementation of the resulting plans.
Building stakeholder relationships was a key component of this process. Relationships needed to be built between all stakeholders in the region, including mill management, growers, local government, environment groups, c o m m u n i t y groups and economic sectors within the local community. This was achieved by personal visits to inform, advise and seek ideas and feedback in relation to the project.
Initially, the Moreton CAN EG ROWERS, Moreton Mill Management Team and the Management Committee determined the direction of the process through a series of meetings, the land-use planning f o r u m meetings and plan-to-plan workshops. Later, other interested groups were included in the planning process, and contributed to the setting of future directions. The additional stakeholders included: environmental and catchment groups, and municipal councils and the Bureau of Sugar Experiment Station (BSES). By the end, the initiative involved twenty-five organisations, representing interests in social, economic and environmental issue in the region (Box 4-2).
Box 4-2 Extent of representation covered by p a r t i c i p a n t s in t h e final Sunshine Coast forum in March 2002.
Industry: Individual growers, Moreton CANEGROWERS, Brisbane CANEGROWERS, and Moreton Mill/Bundaberg Sugar.
Local Government: Maroochy, Cooloola, Caloundra & Noosa Councils.
State Government: Local Member for Nambour, NR&cM, DPI - Policy Analysis &
Industry Development Group, State Development, Premier's and Cabinet, EPA Sustainable Industries.
Environment Non-Government organisations: Mary River CCC, Maroochy CCC, Noosa CCC, Sunshine Coast Environment Group, Noosa Environment Committee, Landcare, Qld. Biodiversity Network.
Business Interests: Mary Valley Enterprise & Tourism Association, Cooloola Regional Development Bureau, Nambour District Chamber of Commerce, Gympie Business Association, Regional Communities Committee.
Research and Development organisations: BSES, CSIRO, CRC Sugar, SRDC.
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4.3.2 The continuing process
During the initial phase of the initiative, the stakeholders determined that they needed information about the extent and location of land suitable for cane-growing, and CSIRO sought to provide this information. As a foundation for further investigations, land cover for the Moreton Mill study area was mapped using remote-sensing and GIS techniques augmented w i t h supplementary data where additional resolution or information was needed. Following this, land suitable for sugar-cane was identified and m a p p e d to establish whether there was sufficient suitable land available for expansion. The addition of environmental criteria, such as retaining riparian buffer zones, refined the analyses to focus on land suitable for sustainable cane-growing (explained in further detail in Chapter 5).
Having identified potential areas for expansion, the stakeholders then determined h o w the potential profitability of these areas could be affected by the local availability of adequate and reliable rainfall, and that existing rain gauge data were not adequate to determine this.
The initiative therefore assembled information to develop a better understanding of the spatial and temporal variation of rainfall in the region. This was achieved by generating average annual and average m o n t h l y rainfall surfaces (in the f o r m of data and maps) to interpolate a best-fit surface to rainfall station and digital elevation data.
However, the stakeholders recognised that even the best cane-growing land is of little value if the cost of getting the cane to the mill completely offsets profitability. To provide the stakeholders w i t h pertinent information about transport costs, the researchers generated analyses to estimate the probable costs associated w i t h hauling cane f r o m potential areas of expansion. The analyses generated a map of distances and travel times between the mill and proposed areas of production (see Chapter 5).
About halfway t h r o u g h the initiative, the Moreton Mill was sold, shifting the ownership f r o m Taite and Lyall (a multinational company trading in Australia as Bundaberg Sugar Ltd.) to Finasucre (a family-managed company). This resulted in a need, by the new owners, to assess the financial viability of the mill. As a multinational company, Taite and Lyall had been able to absorb the Mill's losses in its extended operations; Finasucre d i d not have the same latitude. While initially this did not seem to affect the initiative, there was a sense of urgency f r o m management at M o r e t o n Mill to have a concrete plan in place that they could present to the new owners.
As the initiative progressed, the involvement of local government and environmental groups shifted the discussions f r o m economic (profitability and viability), to social and environmental issues (broader sustainability). In other words, the emphasis shifted f r o m ' h o w can we keep the mill going?' to ' h o w can we continue g r o w i n g cane and maintain all the c o m m u n i t y activities underpinned by this industry?'
The sugar industry in the Moreton Mill region has and continues to face substantial challenges to its m e d i u m to long-term viability. The planning process described hasn't solved these problems. However, it has built relationships across the industry and a capacity to address difficult issues t h r o u g h more effective dialogue and negotiation. This is likely to be fundamental to managing the local industry's transition into its future structure (whatever that looks like) in the most efficient and equitable way as possible. The partnerships established have proven to be reasonably adaptable to changing circumstances and seem to have strengthened and become more integrated as they have become more inclusive. Despite continuing uncertainty about the future, most participants have valued the process and feel that it has helped reduce conflict and avoided the costs, missed opportunities and stress that can arise f r o m sustained conflict.
Although the participatory planning process began w i t h one agenda, it has progressed as a key resource for dealing w i t h the next. Importantly, establishing a process to tackle problems, rather than a t t e m p t i n g to generate specific solutions, enables the participants to contribute to longer-term planning in the sugar industry. By engaging a broader range of stakeholders than just those in the industry, the directions and outcomes are more likely to
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suit the broader regional community, and to have the capacity to continue to keep pace w i t h new situations and challenges. While the Moreton Mill's announcement to cease operation could have been a complete blow to the sugar growers to the area, the strength of the collaborative processes that had been created in the region enables the growers to forge ahead w i t h other plans to market their product, and fostered c o m m u n i t y confidence in the industry's decision-making ability.
As the initial process drew to a close, a task force (made up of industry stakeholders, representatives from local government, environmental groups, and c o m m u n i t y groups) was established to ensure that the process w o u l d continue in the region, and that plans for continuation of the industry in the region could be established and implemented.
Although the Mill announced that it w o u l d close at the end of the 2003 crushing season, the cane growers are optimistic about finding alternative markets for their cane, principally by developing an ethanol plant in the area. Coming under the 'changing to new industry' component of the recently-announced industry assistance scheme, the growers are hoping to either lease the Mill for the next season (with substantial financial support) or broker a plan to ship their cane to other nearby mills (Rocky Point or Maryborough) (also w i t h financial support). The growers have entered negotiations w i t h a construction company to build an ethanol plant in the region which, hopefully, will begin commercial operation in 2004. The growers are working on this proposal w i t h local government, the Chamber of Commerce, environmental groups and various state government departments. The task force has been involved in these negotiations w i t h both the Mill and growers in relation to both issues (mill closure and the new ethanol plant). A task force was established to find ways of ensuring the livelihood of the growers was maintained until the ethanol plant was established. As well as the ethanol plant, the task force investigated other options for growers, such as hemp production, or farm forestry. A key role of the task force has been providing the community w i t h regular updates about negotiations and issues through the local newspapers.