Fears town will collapse as scores of workers laid off after sugar mill closure

Dozens of workers at one of the country’s oldest sugar mills fear the demise of their town as its main employer enters liquidation.

Days after it was announced that the Mossman Sugar Mill would be wound up, more than 60 workers gathered today at Port Douglas to hear from liquidator John Goggin and Queensland’s State Development Department.

Of the 75 employees remaining on the payroll at the mill, the liquidator said 55 would receive a letter from administrators imminently advising them that their services were no longer required.

Only 20 skeleton staff will be required to assist with winding up the facility for the next seven weeks.

The Far North Queensland mill was placed into voluntary administration in November 2023 and when a last-minute buyer fell through workers were thrust into uncertainty.

The mill would typically employ about 100 workers, plus about 30 seasonal workers at peak crush periods, but that number has reduced as contracts end, through attrition, or recent resignations.

Paul Atkins says his colleagues are like “extended family”.(ABC Far North: Conor Byrne)

‘Don’t have words to say’

Process control engineer Paul Atkins, 36, started as an apprentice 18 years ago and knows no other career.

He is married with two children, aged one and three.

“I’m going to have to have some hard conversations about what the future holds for my family,” Mr Atkins said.

He loved his job.

“The upstairs staff and the electrical team have been my extended family,” he said.

Craig Butland says the town of Mossman is in a vulnerable place.(ABC Far North: Conor Byrne)

Craig Butland, 45, works with contractors, suppliers, and vendors, and local businesses in his role within procurement and planning.

“A lot of them don’t have words to say,” he said.

“They never thought it would come to this.”

He said coffee shops, clothing suppliers, hardware shops, ice manufacturers and tradies would all feel the effects of the closure.

“It could force people to leave,” he said.

“Considering the national disaster we’ve had with the floods, the town’s copped a big hit already and this just adds to it.”

He started at the mill as an apprentice fitter and turner 28 years ago and is married with two children in years 8 and 9 at high school.

He is interested in retraining, but questions how much will be subsidised.

Ben McClelland says he is worried about the future of farming on the land surrounding Mossman.(ABC Far North: Conor Byrne)

‘Gut-wrenching’ for growers

Close to 90 growers who supplied the mill also face an uncertain future.

The mill has about 5,000 hectares of farmland under sugarcane, but the crop now has nowhere to go as it would be uneconomical to send the cane elsewhere.

Mulgrave Mill, 83 kilometres south-east in Gordonvale, is the closest facility.

Fourth-generation cane farmer Ben McClelland said it had been “gut-wrenching” for growers.

“We’ve still got a crop in the ground that no-one seems interested in helping us get rid of,” he said.

“We were told in June to go ahead and plant cane and told in November there’s no mill.

“It’s been very stressful.”

Workers and cane growers listened to presentations from the liquidator and the government about life after the closure of the mill.(ABC Far North: Conor Byrne)

Mr McClelland said growing other crops was difficult in the region and some farms would be abandoned.

“The land will go to rack and ruin,” he said.

“We’ll all probably leave and go find other jobs elsewhere.”

Mr McClelland said this time of year was too wet to grow other crops and that water licences were scarce in the dry season.

“That’s why we grow sugar cane,” he said.

“A lot of those farmers are getting old.

They’re set up to grow sugar cane and it’s easy for them, but for them to diversify into other crops — it’s just not going to happen.”

Workforce Australia facilitator Tamilyn Brennan says the workers may be able to help alleviate the skilled worker shortage in the region.(ABC Far North: Conor Byrne)