Molasses 'new normal' - short supply, high demand

REDUCED supplies of molasses for stockfeed in line with smaller cane crushes has sparked talk that beef producers should start thinking seriously about on-farm storage. While La Nina conditions are far from the severe drought that drove demand for the high-energy feed to the point where it had to be imported during the past two seasons, market conditions are pointing to the likelihood higher molasses prices and shorter supply will be the 'new normal'. Added to lower molasses volumes out of Australian sugar mills is growing demand with more grainfed beef production and increased competition from overseas buyers, from both the feedstock and fermentation (ethanol) industries. It is also used in some Australian distilleries for fuel production, although much of the capacity this year was diverted to making hand sanitiser. Where molasses had traded for $150 a tonne in previous years, cattle producers are now expecting little to be on offer under $200 and more likely towards the $250 ...