MSF Sugar today made history by exporting its first Australian Brand 1 high polarity raw sugar cargo to Japan under the recently signed Japanese-Australia Economic Partnership Agreement (JAEPA).
The Agreement will provide agricultural producers benefits and better opportunities in Japan which is a key market for MSF Sugar.
The 26,000 mt cargo has been sold to ITOCHU Corporation which supplies sugar, confectionary materials, coffee and dairy products globally.
MSF Sugar CEO Mike Barry said that historically Queensland raw sugar marketing arrangements restricted some Japanese customers from accessing raw sugar from Queensland.
“Under the new JAEPA, Australia can now export Brand 1 raw sugar – 98.85 pol – to Japan.
“This is an important first step in securing better access to Japan, and we are hopeful the current Trans Pacific Partnership (TPP) negotiations will secure improved commercial outcomes and provide MSF Sugar and the Australian Sugar industry with a competitive advantage,” he said.
Polarity (‘pol’) is a measure of the purity of the sugar based on the quality of refining which it has undergone meaning that the shipment to ITOCHU Corporation, Japan, is high quality raw sugar.
To celebrate, MSF Sugar along with representatives of ITOCHU Corporation, Japan, the Japanese Consulate and sugar producers will view loading of the vessel today at Cairns Bulk Sugar Terminal.
Previously Australian exports limited to lower polarisation/ purity raw sugar specifications compared to Thailand raw sugar with 98.5 pol.
MSF Sugar, an integrated sugar producer, is Australia’s second largest raw sugar miller, Australia’s largest sugar cane producer and exporter in its own right.
Australia’s raw sugar exports to Japan were worth an estimated $225 million in 2013-14, making Japan the third-largest export market for sugar.