Hundreds of hectares of sugarcane have reportedly been flattened; with Mackay and Proserpine districts being the worst affected areas.
Canegrowers CEO said that some of the canes would have been uprooted and some underwater, and that the full extent of the damage to farms and crops would not be clear for a number of days.
“We understand the Mackay and Proserpine regions produced 8.5 million metric tonnes of sugarcane, out of a statewide harvest of 35 million metric tonnes last year,” says analyst Ben Santoso in a Thursday flash note, “The yields will consequently be affected for the 2017 harvest, which is due to start in less than three months.”
According to Wilmar Sugar Australia's website, the majority of the group’s mills are located within cyclone Debbie’s path. Hence, we expect a drop in Wilmar’s sugar production in FY17F.
Wilmar shares are down 2 cents at $3.56. DBS has a price target of $3.90.
