Molasses 'new normal' - short supply, high demand

Published Oct 1, 2020

Original content

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 mark. Some Queensland producers paid as much as $800/t for imported molasses last year, backed into a corner of continually supplementing through drought, with no agistment on offer, no grass and a depressed market to sell on. Several thousand tonnes was imported from Vietnam and Thailand over the past two seasons in a very unusual move - long-time producers can remember it being imported only once before. Around 40 Queensland producers signed up for the ...
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