Table of contentsContextTradeRecent issuesBackgroundThe Australian sugar industry is one of the most vital industries for Australian agriculture, as it is the world's second largest exporter of sugar gross behind Brazil. Almost all of Australia's sugar (95%) is produced in Queensland, with around 5% in northern New South Wales. According to the Australian Sugar Milling Council, “there are approximately 4,400 sugarcane farming entities growing sugarcane on a total of 380,000 hectares per year, supplying 24 mills owned by 7 separate processing companies. The vast majority of sugarcane farms belong to individual owners or family companies. Factory ownership structures are a combination of public entities, private companies limited by guarantee, and cooperatives. However, in the 2017/18 season, the harvested area expanded to 410,000 hectares, significantly above the ten-year average of 380,000 hectares. The 40% increase in the price of sugar over the last 3 years has led sugarcane producers to increase their production. Say no to plagiarism. Get a tailor-made essay on 'Why violent video games should not be banned'?Get the original essayTradeThe sugar industry is particularly important to Australian trade as around 80-85% of the sugar produced in Queensland is exported, this which brings in more than $2. billion per year in Australia. Production from regional New South Wales is mainly refined and used locally in the domestic market. Sugar exports for 2016/2017 exceeded initial estimates to reach 3.9 million tonnes due to favorable yields and international market developments. The Korea-Australia Free Trade Agreement removed a 3% tariff on raw sugar imported into Korea, which leveled the playing field for Australia, allowing it to export more to Korea. Additionally, the Japan-Australia Economic Partnership removed a tariff on imported raw sugar, which proved beneficial for Australian exports. Australian exports to the Chinese market are also expected to increase over the coming years due to increased market demand. Recent Issues The Australian sugar industry has undergone significant changes over the past 15 years which have not yet been fully resolved. Prior to 2006, a company called Queensland Sugar Limited (QSL) was responsible for export sales of raw sugar directly to refiners in other countries, essentially controlling the marketing of the entire Australian export sector. In 2006, the Australian government deregulated the Queensland sugar industry, requiring QSL to negotiate voluntary contracts with factories to market its raw sugar for export. Every factory has signed contracts with QSL as they have long-standing, trusted relationships with them, except for a company called Wilmar which threatens to disrupt the industry. Wilmar purchased 8 sugar mills in 2010 and 2011 which collectively produce over half of Australia's sugar supply. . Instead of using QSL to market its sugar, Wilmar decided to sell all of its sugar through its own trading arm, which has been completely legal since deregulation in 2006. However, this decision caused many negative reactions that affected Australian sugar cane. producers, politicians, as well as QSL and Wilmar.Keep in mind: this is just a sample.Get now.