Ethanol Mandate Denied in Queensland

The State Government of Queensland postpones the introduction of ethanol in petrol for another 12 months. At the end of the year, AgForce and Canegrowers expected the 5% ethanol mandate which is now being delayed for another year.

As many Australian farmers depend on the ethanol industry, AgForce articulates complaints about the Government’s decision.

Its president, Wayne Newton, points out: "Grain sorghum is the main grain that's used in Australia for making ethanol. We just see it as a way that we can put a permanent flaw in the market. The Dalby plant for instance uses approximately 200,000 tons a year of sorghum - that's only a small amount of the total crop but it just puts a new buyer permanently in the market for our grain and we'd like to see that”.

The local farmers are worried about the consequences of the ethanol rejection. From an economic stance, it was expected to present a key issue in order to sustain the farming industry in the future.

Spokesperson of Canegrowers, Steve Greenwood, rates the government decision in a more relaxed way, articulating that the ethanol production represents a minor part in the sugar industry. Thus the expected consequences of the government decision are not seen as alarming.