Mackay Sugar

Mackay Sugar Co-operative

Association LimitedABN 12 057 463 671

Corporate Office

Peak Downs Highway,

Racecourse, via Mackay

PO Box 5720,

Mackay Mail Centre,

Queensland 4741 Australia

Phone (07) 4953 8200

Facsimile (07) 4953 8340

Web: www.mkysugar.com.au

Email: info@mkysugar.com.au

Chief Executive Officer

J S (John) Pollock

General Manager Finance &

Administration

C J (Clive) Desbois

Auditors

Bennett Partners

Corporate Solicitors

McCullough Robertson

S B Wright, Wright & Condie

Banker

Rabo Australia Limited

The AssociationThe Mackay Sugar Co-operative Association Limited, formed in 1988,is Queensland’s largest private company and produces more than 20percent of Australia’s raw sugar at its four Mackay mills. Through a25 percent interest in Sugar Australia Pty Ltd and the New ZealandSugar Company it is also a major participant in sugar refining and

marketing in Australia and New Zealand.

Directors

C E (Eddie) Westcott, Chairman

B B W (Barry) Sheedy, Deputy Chairman

A R (Andrew) Amer(07.10.2003)

A (Andrew) Barfield

A S (Andrew) Cappello

I L (Ian) Fraser

R S (Richard) Galea

S (Sydney) Gordon(from 27.11.2003)

M F D (Malcolm) Pratt(to 27.11.2003)

M A (Albert) Volker

Contents

Summary .............................................................................1

Chairman’s Report ..................................................................2

Operations Report ..................................................................5

Six-year Performance .............................................................7

Directors’ Report ...................................................................8

Concise Financial Report .......................................................15

Directors’ Declaration ...........................................................18

Auditor’s Report ...................................................................19

Glossary .............................................................................20

Notice of MeetingNotice is hereby given that the

17th Annual General Meetingof the

Mackay Sugar Co-operative Association Limitedwill be held in the

Mackay Entertainment Centre,Gordon Street, Mackay

onFriday 26th November 2004,

commencing at9.00 a.m.

Annual Report 2003/04page one

Summary

Cane Milled(Million Tonnes)

00/01 01/02 02/03 03/04 04/05

4.6

63

5.0

16

6.2

53

5.1

28

5.8

0 (

est

)

Sugar Produced(`000 Tonnes IPS)

00/01 01/02 02/03 03/04 04/05

59

1

76

5

93

3

71

2

86

0 (

est

)

Average Sugar Price($/Tonne IPS)

00/01 01/02 02/03 03/04 04/05

25

3

33

1.6

27

6.7

23

1.9

25

0 (

est

)

Operating Profit/Loss($ Million)

00/01 01/02 02/03 03/04 04/05

-14

.3

-1.2

11

.59

-8.2

11

.0 (

est

)

• Tonnes Cane Processed – 5.128M (6.253M last year)A disappointing crop delivered on the back of ongoing droughtconditions for the district. It could have been worse with pre-season predictions of a crop of only 4.7M tonnes. Crucial rain inlate May provided sufficient growth through the season to reach5.128 million tonnes. Again, Pleystowe Mill was idle with only threemills being used to process the crop.

• Sugar Content – 13.57 CCS (14.57 last year)The lack of rain through the peak growing period for the cropmeant that the crop was still very immature during the early weeksof the season with the weekly average CCS starting below 11.5and not climbing above 12 units until the sixth week of the crushing.A mid-season surge in levels saw the seasonal average finish justbelow the long-term average for Mackay Sugar of 13.75 units.

• Tonnes sugar produced – 711 540 (933 347 last year)The low tonnage combined with a below average CCS resulted ina 23.8 percent decrease in sugar output to 711 540, MackaySugar’s lowest production since the orange rust devastated seasonof 2000.

Financial Performance• Operating Revenue - $197.8M ($290.5M last year)

Another significant reduction in the sugar price by $44.82 pertonne IPS sugar to $231.88 per tonne ($276.70/tonne in 2002/03)combined with decreased returns for molasses and the reductionin crop size resulted in a 31.9 percent slump in operating revenueto $197.8M

• Operating Loss - $8.226M ($11.595M profit last year)With the business facing the challenges of a negative turnaroundof $19.8M from last year’s result tight financial management limitedthe reduction in Mackay Sugar’s cash position to only $1.4M.

The Year Ahead • A return to profit on the back of improving sugar

prices and a slightly better crop

Although badly affected by drought-like conditions since February,the 2004 crop is up some 700 000 tonnes on the 2003 crop.Combining this with an improved sugar price outlook and furtheradvances in containing costs will result in a profit for Mackay Sugarcurrently forecast at about $11.0M.

Chairman’s Reportpage two

The 2003/04 year has againhighlighted the uncertainties ofour business. The quiet optimismof 2002/03 was severely dentedby another small crop for the yearunder review.

Through very tight financialmanagement we have been ableto keep the resulting loss to$8.22M with the reduction in ourcash position limited to $1.4M.

Cost Reduction StrategyThe Board reacted to the loss by againprioritising a campaign to further reduceour costs. We have given in-principleapproval to a Target 10 program aimedat reducing our production costs to$10.00 per tonne of cane. We believewe can achieve this by the strategicinvestment of capital in the factories inareas that give a high rate of returncombined with maintenance savingsthrough the alliance with TransfieldServices. The sugar recovery rate forRacecourse and its sugar qualityperformance are still of concern and bothare an area of the business where weare concentrating attention in the Target10 program. The program alsocontemplates the introduction of driveronly trains once the safety andtechnology issues are resolved as thisis an area that offers great opportunitiesfor a major change in our cost structure.However our first priority is to improvethe performance of our current railoperation.

Transfield Services AllianceThe alliance with Transfield Services Pty.Ltd has now been operating for longenough for us to be able to start makingsome comment. We are absolutelydelighted with the improvement that hasbeen achieved in the safety performanceof Mackay Sugar. We now have the bestsafety performance in the sugar millingindustry and the rate of the change hassurpassed all expectations. The safetyimprovement has been driven with realpassion by Bob Buckley, the TransfieldManager in the Mackay Sugar Allianceand his team and I wish to acknowledgeBob’s contribution to this achievement.

The rate of improvement in other areas

of the business has not been as dramaticand in some ways a little disappointing. There is no doubt the methods Transfieldwant to bring to our maintenancesystems can achieve real savings forMackay Sugar. However the necessaryback up support has not been given tothe people charged with introducing thenew systems. The introduction of theSAP system to collect and produce thedata was not handled well and it wasonly the ability to work around thesystems, the initiative and dedication ofa large number of people in the “OneTeam Alliance” that kept the operationslowly moving forward.

Transf ie ld has recognised theshortcomings in the introduction of theirprograms and have now committed, attheir expense, additional resources toaccelerate the changes necessary toachieve the Key Performance Indicatorson which the Alliance is based. Failureto reach those KPI’s means we do notmake the savings we require andTransfield do not get a share in thesavings as a return for their effort. Overthe next twelve months we will beworking to achieve the same scale ofadvances in maintenance outcomes aswe have in safety.

On a more positive side though, we haveshown that we were able to completethe maintenance program for four millswith the workforce of three, even in thevery tough labour market that wecurrently compete in. Our ability to sourceexperienced, qualified people is anemerging problem for the business. Alsoof note is the fact that we were able tostart the 2004 season with all four millscrushing with only a small increase inpermanent staff.

Mackay Sugar IndustryPartnershipThe Mackay Sugar Industry Partnership(MSIP) continues to develop. We havea very mature relationship now withCANEGROWERS and Caneharvesters Mackaythat allows us to discuss, in detail, theissues facing the local industry and reachdecisions that are in the “best interest”of the district rather than justconcentrating on one part of the industry.This has seen the development of a level

page three

of trust that can survive the times whenwe will agree to disagree.

MSIP was the vehicle that was used todevelop a new approach to productivityin the district following the decision ofthe State Government to return theownership of the old “Pest Board” to localownership. Mackay Area ProductivityServices (MAPS) has been founded underthe Chairmanship of Andrew Barfield andit is making an impressive start. MackaySugar and CANEGROWERS are jointlyfunding the salary of the manager. Thisis on top of the levies paid by MackaySugar and its shareholders.

In addition, Mackay Sugar has committedan extra $100,000 per year for the nextthree years to ensure MAPS has adequatefunding as it develops new programs.It was disappointing that in the earlypart of this year BSES saw MAPS as acompetitor. The full potential of MAPSand BSES in this region can only bereached by a real partnership beingformed between the two so that the best

possible service is provided in the field.BSES now appears to have overcome itsfear of MAPS and the two groups arebeginning to work well together.

Mackay Sugar StructureAt the Annual General Meeting of 2003,members voted almost unanimously toask the Board to investigate andrecommend to the members an alternatestructure to the current co-operative.After some lengthy discussion andconsideration the Board reported backto the membership in June that webelieved a change in structure at thistime would not improve the position ofindividual shareholders and thereforeshould be delayed until such time asmore value could be added to thebusiness.

In March, the Man PLC share of SugarAustralia was sold to CSR. We had spentalmost six months prior to March seekingto raise the capital to fund the purchasethrough our pre-emptive right. In theend, we were not able to do that to the

Farleigh Mill sugar boiler Brett Davies (left) shares a lighter moment with Factory Production Manager ClaudePozzetti as they review progress during the production of yet another batch of premium quality sugar. Theproduction of premium quality sugar has been serious business for the Farleigh production team with 2003 seasonresults ranking it second in the State earning a net bonus of $4.20 per tonne for the Association with 87% of thesugar made for the season complying with all quality criteria.

page four

Chairman’s Report (continued)

real regret and disappointment of thevast majority of shareholders. Debtfunding of large projects such as thepurchase of the Man PLC share of SugarAustralia will always be difficult until weare able to substantially reduce ourcurrent debt. The inability of a co-operative to use equity funding tobroaden its income base will continue tochallenge the Board and shareholders.We will only reduce our debt if we canproduce reasonable crops combined witha reasonable price.

Central Region Sugar GroupAt the beginning of 2004 it appeared wewere facing very low prices and theindustry approached the FederalGovernment for assistance. Inanticipation that some help would comeand that it would be loosely based onthe previous package, a group knownas the Central Region Sugar Group(CRSG) was formed from CSR, ProserpineCo-ope ra t i ve , Mackay Sugar,CANEHARVESTERS Mackay and theCANEGROWER groups of each area. TheCRSG’s aim was to produce a regionalplan that would convince the governmentthat we had the will and ability to changeand improve our practices to be able tosurvive in the current world market andtherefore access some of the set-asidefunds from the Sugar Industry ReformPackage of 2002 (SIRP 2002). Thegovernment subsequently announced arevised $444M package in April (SIRP2004) and some of that money hasalready flowed to the industry throughthe first tranche of a sustainability grant.However the hard part is still ahead andwe will have to demonstrate very clearlythat we can make the changes theindustry agreed to with the Governmentto secure the balance of the package.

At the Annual General Meeting of 2003,Malcolm Pratt retired from the Board.Malcolm had been a member since hiselection in December 1991. Malcolmnever hesitated to make decisions thatwere in the best interests of the co-operative, even though they may notalways have been popular with theshareholders. He always supported theBoard decisions irrespective of his ownposition during debate within the Board.

On your behalf I do thank Malcolm forhis contribution to Mackay Sugar overthe years. Sydney Gordon was electedto the Board to fill the vacancy left byMalcolm.

The Board is working well as a team.We need to because the sugar industryin this district again faces some enormouschallenges. The forecast result of a profitof approximately $11 million for the2004/05 year will again allow us toreduce some debt, but prospects for agood crop next season, at the time ofwriting this report, are not good. It hasagain left farmers, harvest operators,mill staff and employees with someconcerns about the future.

The booming coal industry is providinga very attractive alternative to the sugarindustry in terms of employment securityas we continue to struggle throughdrought to produce a good crop on whichall of our prosperity starts. As I referredto earlier in this report, the loss ofexperience in all sectors is high and thiscreates a problem for which we will needto find a solution. The challenge beforeall of us is to accept that changes to theway in which we have been operatingwill occur and that we do have a futurebut that the future could well be radicallydifferent from now.

Finally I want to pay tribute to our OneTeam Alliance workforce along with ourgrowers and harvesting contractors fortheir tenacity and dedication during our‘roller coaster’ ride of poor seasons andprices. I am encouraged by the fact thatall sugar industry sectors are still lookingfor and finding new ways to meet thechallenges and that can only mean thereis still an underlying feeling of confidencein the future.

CE (Eddie) Westcott, Chairman

page five

Operations Report

CropPre season estimates for 2003 indicateda potential crop in the order of 4.7 milliontonnes. Fortunately an average of 50mmof rain was received across the districtin May and this assisted the crop to growto 5.128 million tonnes. However this2003 crop amounted to an 18 percentreduction on the 2002 crop and equalto only 66 percent of Mackay Sugar'sbest throughput of 7.776 million tonnescrushed in 1998.

The crop yield of only 66.96 tonnes ofcane per hectare was down on the 2002yield of 78.72 tonnes per hectare areduction of 14.9 percent. As a result ofsevere frost in early August upwards of500 000 tonnes of cane across the districtwas estimated to have been affected tosome degree. A concerted effort wasmade to assist in the early harvestingof the most severely affected cane. Thegeneral immaturity of the crop alongwith other factors such as un-seasonaldry weather and frost contributed to adrop of 6.9 percent in CCS to 13.57 unitsfrom 14.57 units in 2002.

Sugar ProducedThe combination of both lower cane andsugar yields per hectare accounted fora final sugar make of 711 540 tonnes ofIPS sugar. This was a 23.8 percentreduction on the previous year of933 347 tonnes of IPS sugar. The CCSlevel of 13.57 was a unit lower than the2002 season and 1.21 units lower thanthat achieved in 2001. The resultantsugar production for 2003 of 711 540tonnes was low at around 66 percent ofMackay Sugar's capacity.

Crushing Rate & Lost TimeThe 2002 strategy of running a threefactory operation rather than a fourfactory operation was again implementedfor the 2003 season due mainly to thesize, condition and distribution of theestimated crop. Lost time in the factorieswas disappointing with an increase of18.3 percent on the previous year'sperformance. The group average factorylost time was the second highest forMackay Sugar and amounted to 7.88percent for the year. This comparesunfavourably to the best practice of 3.55

percent achieved in 1998. The continuedlevels of reduced expenditure on capitaland maintenance provide a challenge toour staff in prioritising and allocating theavailable dollars to achieve the bestresults for the company.

At each of the factories there were varioussignificant events that impacted on thelevel of factory lost time. The major losttime event at Marian was associated withfailures in both high and low pressuresteam mains which necessitated thefactory to be shut down to completerepairs totalling around 36 hours. OverallMarian reduced its factory loss timeslightly to 6.6 percent from 7.67 percentin 2002.

Farleigh's factory lost time in 2003increased to 7.78 percent from 5.33percent with a major contribution of thisbeing vibration problems and subsequentrepairs to the shredder and a failure ofthe hydraulic drive on number 1 mill.These issues accounted for more than56 hours of the factory's total downtime.

Racecourse had a significant rise in losttime from 3.96 percent in 2002 to 9.2percent in 2003 driven predominatelyfrom an incident that allowed sugarcontaminated condensate to enter theboiler feedwater supply. This event andthe subsequent consequential damagethat occurred accounted for more than179 hours of the total factory lost timeor 5.2 percent.

The overall crushing rate of 1 685 tonnesper hour for 2003 was 5.3 percent lowerthan that achieved in 2002. It should benoted that in 2002 the rate at the 3operating factories was elevated bytransferring liquor for processing toPleystowe. Other contributors to thereduced rate were limitations of canesupply in the early part of the season,cane quality, unusually high scaling ratesin the evaporators and processinglimitations of other sections within theplants. A plan to address the issuesaffecting crushing rate were a majorfocus for the 2004 season.

Factory EfficiencyThe overall sugar recovery (measure of

page six

Operations Report

Operational PerformanceSeason 2003 2002(Financial Year) (2003-04) (2002-03) Change

ProductionTonnes cane milled 5 128 009 6 252 708 - 18.0%Sugar Content - CCS (i) 13.57 14.57 - 6.9%Tonnes sugar produced - IPS (ii) 711 540 933 347 - 23.8%

Field PerformanceCane production area (ha) (iii) 101 550 101 761 - 0.2%Cane area harvested (ha) 76 583 79 431 - 3.6%Tonnes cane/ha 66.96 78.72 - 14.9%Tonnes sugar/ha (iv) 9.29 11.75 - 20.9%% Crop harvested green 96.88 94.64 + 2.4%

Factory PerformanceMilling rate (tonnes cane/hr) 1685 1 781 - 5.4%Milling loss - in bagasse (v) 3.96 4.00 - 1%(% sugar) - in mud (vi) 0.45 0.53 - 15.1%

- in molasses (vii) 7.90 7.08 + 11.6%Time loss - cane supply stops 34 45 - 24.4%(hours) - factory stops 271 229 + 18.3%

- industrial stops 0 13* Note - Only three of Mackay Sugar’s four factories processed cane during the 2002 & 2003 harvest.

(i) CCS (Commercial Cane Sugar) is a measure of the percentage of cane sugar recoverable as pure sugar.(ii) IPS (International Pol Scale) is a measure of the commercial value of raw sugar.(iii) Cane Production Area (Assignment) is the particular area within a grower’s land description from which he is entitled

to supply cane to a mill.(iv) Sugar Yield expressed as tonnes CCS.(v) Bagasse is the residue remaining after the extraction of juice in one or more mills in a sugar mill.(vi) Mud is the residue discharged from mud filters after clarification of cane juice.(vii) Molasses is a by-product of the sugar milling and refining processes. It is a brown viscous syrup and is used for stockfeed

and fermentation purposes.

sugar recoverable from the cane supply)for 2003 was 89.26 percent, this wasmarginally lower than the 2002 seasonresult of 90.23 percent. Performanceimprovements in sugar losses frombagasse and mud were overshadowedby the increase in the losses in finalmolasses. The increased losses in finalmolasses were generally associated withlower cane purity causing increasedimpurity loadings and subsequentincreases in molasses production.

Sugar QualityQueensland Sugar Limited reviewed theSugar Quality Incentive scheme to moreclosely align both the penalty and bonusto market requirements. This was thefirst year of operation of the revisedscheme.

MSCA earned $3.32 per tonne of sugarin bonus from the scheme with 70.1percent of sugar made complying withall quality criteria. Farleigh performedsecond best in the state earning a netbonus of $4.20 per tonne (maximumachievable $5.00) with 87 percent ofsugar made complying with all qualitycriteria. Marian and Racecourse rankedsixth and twenty-second in the statewith 79.3 percent and 40.3 percent

compliance respectively. Just under halfof the non-compliance and penaltieswere in criteria over which the mills havelimited economically justifiable control.

Molasses ProductionThe seasonal molasses production was183 365 tonnes including 7 896 tonnesfrom the Refinery, representing a quitehigh 3.42 percent Cane.

A combination of lower than expectedearly season sales and higher thanexpected production caused storagedifficulties which were ultimately resolvedby an 18,000 tonne export at low No. 2Pool prices and cooperation of CSRDistilleries in optimising limited regionalstorage.

End of season storage was 33 600 tonnesin anticipation of strong non-crush stockfeed sales that failed to eventuate. Theexcess was eventually put into lessprofitable markets to clear storage inreadiness for the new season. .

Planning is underway for provision ofextra mill storage to allow more flexibilityin matching timing of production andsales demand.

page seven

Six-year Financial Performance

Production 2003/04 2002/03 2001/02 2000/01 1999/00 1998/99Tonnes cane milled 5 128 009 6 252 708 5 015 670 4 662 553 6 627 533 7 776 198

Sugar content - CCS (i) 13.57 14.57 14.77 12.60 13.50 12.12

Tonnes sugar produced - IPS (ii) 711 540 933 347 755 866 590 845 915 597 967 167

Profit & Loss ($’000)Operating revenue 197 810 290 546 272 115 167 056 256 082 355 229

Net interest 5 451 4 470 5 441 6 389 4 255 3 954

Depreciation 9 154 10 841 17 376 17 082 16 479 17 740

Operating profit/(loss) (iii) (8 226) 11 595 (1 219) (14 285) (7 104) 19 132

Retained profits 184 024 192 250 179 672 180 891 195 176 202 280

Balance Sheet ($’000)Current assets 41 361 52 020 34 223 32 526 46 791 73 748

Non-current assets 326 038 339 357 358 086 459 080 440 061 448 935

Total assets 367 399 391 377 392 309 491 606 486 852 522 683

Current liabilities 57 485 112 795 104 957 99 967 69 460 112 057

Non-current liabilities 43 292 3 734 25 082 41 122 52 590 38 719

Total liabilities 100 777 116 529 130 039 141 089 122 050 150 776

Total members’ equity 266 622 274 848 262 270 350 517 364 802 371 907

Capital Expenditure ($’000)Expenditure 2 295 2 688 5 344 5 631 18 686 21 613

RatiosNet interest cover (times) (0.51) 3.59 0.78 (1.24) (0.67) 5.84

Return on members’ equity (3.09)% 4.58% (0.46)% (4.08)% (1.95)% 5.14%

Net debt : members’ equity 23.17% 21.97% 32.00% 28.60% 20.74% 15.37%

Current assets : current liabilities 0.72 0.46 0.33 0.33 0.67 0.66

Members’ equity : total assets 0.73 0.70 0.67 0.71 0.75 0.71

Total assets : total liabilities 3.65 3.36 3.02 3.48 3.99 3.47

(i) CCS/Commercial Cane Sugar is the percentage of cane sugar recoverable as pure sugar.(ii) IPS: International Pol Scale, a measure of the commercial value of raw sugar.(iii) Operating profit/(loss) before additional price paid for cane and Income Tax.

Manager Production for Mackay Sugar, Frank Forzatti (left) and Farleigh Production Engineer Harry Brookes are pictured hereduring a scheduled maintenance stoppage at Farleigh. Apart from the obvious repairs and maintenance of equipment, the scheduledstoppages throughout the crushing season provide an opportunity for cleaning of vessels and fine tuning equipment located inthe various process stages of the factory, each of which have a critical role in the production of high quality sugar.

page eight

Director’s Report

The Directors present their report and thefinancial statements of the Mackay SugarCo-operative Association Limited for theyear ended 30 June 2004. In terms of theCooperatives Act 1997 (Qld), the Associationhas complied with the requirements of theCorporations Act 2001 in the presentationof this report and the associated financialstatements.

Directors

The names and profiles of Directors in officefrom 1 July 2003 to the date of this reportfollow. A record of Board Meetingattendance during the year under reviewis set out on page 9.

C E (Eddie) Westcott (Chairman)Elected Director since incorporation andChairman since December 2002. Caneproducer for more than 30 years with wideexperience in co-operative sugar millingmatters. Alternate Director of SugarAustralia Pty Ltd and New Zealand SugarCompany Ltd. Director of Queensland SugarLtd and the Co-operative Federation ofQueensland.

B B (Barry) Sheedy FCPA (Ret.)(Deputy Chairman)Elected Director since 1996. Varied sugarindustry experience including managementof the Farleigh Co-operative Sugar MillingAssociation Ltd and Manager Finance &Administration of Mackay Sugar. Chairmanof Great Barrier Reef Marine Park AuthorityAudit Committee and Director of RPG Ltd.

A (Andrew) Barfield B.Ag.Sc MBA GAICDElected Director since 2001. Cane producerfor 15 years. Deputy Chairman of SugarResearch and Development Corporation.In June 2003 appointed to the Farleigh,Marian, Pleystowe and Racecourse CaneProduction Boards. 1998 Nuffield Scholar.Former Chairman of Canegrowers PleystoweArea Committee. Appointed inauguralChairman of Mackay Area ProductivityServices (MAPS) in May 2004.

A S (Andrew) CappelloElected Director since 2001. Cane producerfor 20 years. Chairman of Pioneer Valley

Water Board, Director of the AustralianNational Committee for Irrigation andDrainage Board, Member of the SunWaterCustomer Council and Rural Water UseEfficiency Management Group. MackaySugar representative on the Board of MAPS.

I L (Ian) Fraser FCPA FAICDIndependent Director since February 1999.Extensive business experience includingManaging Director of Pioneer Sugar MillsLtd, Clyde Industries Ltd, AustralianChemical Holdings Ltd and TNT AustraliaPty Ltd. Currently Chairman of The GasMarket Company Ltd, EnvironmentalRecovery Services Ltd, Forest Place GroupLtd, Hudson Timber Products Ltd and aDirector of PMP Ltd and Structural SystemsLtd.

R S (Richard) Galea B.ComElected Director since February 2003. Afterqualifying as a Chartered Accountantreturned to manage family farming interestsin 1994.

A R (Andrew) Amer BA, MSc, MBA,FAICDIndependent Director since October 2003.Extensive business experience acrossAustralia and Asia Pacific in manufacturing,banking insurance and investment, retail,and management consulting, includingManaging Director of Amoco Australia,Group Manager Strategy & Marketing ofSuncorp, GM Service Development of MyerGrace Bros and Management Consultant inStrategy Marketing and OrganisationalRestructuring for Price Waterhouse Urwick.Currently also a Director of Ainsworth GameTechnology Limited.

M A (Albert) VolkerElected Director since incorporation. Caneproducer for 35 years with wide experiencein co-operative sugar milling matters.Mackay Sugar representative on theBoard of MAPS. Member of MackayRegional Water Resources Committee.

S (Sydney) Gordon MAICDHas been growing cane in the MackayDistrict for 32 years and was elected tothe Board in November 2003.

page nine

Director’s Report

Primary Activities of theAssociation

Primary activities of the Co-operativeare:

(a) to acquire, transport and processsugar cane to produce raw sugar,raw sugar products and by-products and to manufacture,transport, store, market anddistribute those products and by-products;

(b) to manufacture, transport, store,market and distribute refinedsugar, syrups, raw sugar forhuman consumption and similarproducts and by-products; and

(c) to produce, market and distributeelectricity and other value-addedcommodities through the use ofproducts and by-products arisingfrom the activities in (a) and/or(b) above.

There was no significant change in thenature of the Association’s primaryactivities during the financial year.

Review of Operations

A detailed review of the operations ofthe Association during the year underreview, and the results of theseoperations, are included in the‘Operations Report’ on page 5 and 6 ofthis Report.

Operating Result

A drought affected crop of 5.128 milliontonnes coupled with average sugarcontent (CCS) of 13.57 units resultedin 711 540 tonnes IPS sugar beingproduced. (933 347 tonnes in 2002/03)

With sugar production well below thedistrict’s potential and the final price pertonne IPS sugar of $231.88, down almost$45 per tonne on the 2002/03 price,operating revenue was reduced by 32percent to $197.8 million. ($290.5 millionin 2002/03)

Despite ongoing cost reduction strategiesthe Association suffered an operatingloss of $8.226 million. This disappointingresult represents a $19.8 millionturnaround on the 2002/03 result of$11.595 million operating profit. Thisyear’s loss was reduced by the firsttranche of the government sustainabilitygrant of $4.09 million.

The Financial Statements at pages 15to 18 of this Report and the Discussion& Analysis regarding those statementsat page 14 further explain theAssociation’s operating result for theyear under review.

Changes in State of Affairs

There was no significant change in thestate of affairs of the Association otherthan those advised in other sections ofthis report, or in the accounts or in thenotes thereto.

After Balance Date Events

In the opinion of Directors, no matter orcircumstance has arisen in the intervalbetween the end of the financial yearand the date of this report, which hassignificantly affected, or may significantlyaffect the operation of the Association,the results of those operations, or thestate of affairs of the Association insubsequent financial years.

C E Westcott 11 11 11 9

A R Amer 9 8 7 6

A Barfield 11 11 11 11

A S Cappello 11 11 11 11

I W Donaldson 3 3 1 0

I L Fraser 11 10 11 6

R S Galea 11 11 11 11

S Gordon 6 6 4 4

M F Pratt 10 10 7 6

B B W Sheedy 11 11 11 9

M A Volker 11 11 11 9

Board Meeting Attendance

Special MeetingsRegular Meetings

Held (a) Attended (b) Held (a) Attended (b)Director

(a) Meetings held while a member, (b) Meetings attended.

page ten

Director’s Report

Future Developments

The Board continues to explore ideasand projects to advance the Association.However, until any such idea becomesa firm commercial proposal, untimelyand early disclosure could result inunreasonable prejudice to theAssociation.

Environmental Issues

Mackay Sugar is subject to various stateand federal environmental regulations.The primary focus of current legislationis to minimise the risk of environmentalharm caused by contaminant releasesto air, water or land.

In relation to the year under review, theassociation complied with its licenseprovisions and the requirements of thenewly amended actions of theEnvironmental Management Plan (EMP).

A revised EMP Action Plan was approvedby the EPA in February 2004 allowingMackay Sugar greater flexibility in

meeting stack emission licence limitswithin a timeframe that recognisescurrent financial constraints and evolvingbest practice maintenance strategies forboiler dry dust collectors.

In addition to the improvement workperformed as part of the EMP ActionPlan, work has commenced in reducingother identified risks. Most notably, thefirst stage of a ‘dirty water’ capturesystem for Marian was completed in2003. Completion of subsequent stagesof this project will result in a significantreduction in risk associated with potentialcontaminant run-off from the mill siteinto the Pioneer River.

Other improvement initiatives are focusedon increased controls in respect toeffluent irrigation, waste reduction,i n c reased recyc l i ng and theimplementation of an EnvironmentalManagement System that meets therequirements of ISO 14001. All of theseinitiatives serve to further cement thegood relationship currently in existencewith the EPA.

Cane is hauled to the Mackay Sugar mills for crushing across more than 700 kilometres of cane railway networkduring the season. Forty-six locos, crewed around the clock by more than 250 drivers and assistants are involvedin the transport system. A state-of-the-art centralised traffic control facility has been established at Pleystoweto enable better and safer direction of the cane railway operations. This photo shows traffic officer Tim Deancommunicating with crews in the Marian Mill sector of operations. Images representing the rail networks of eachmill are projected onto large wall mounted screens in front of the traffic officers on duty while video images ofthe cane railway yards at each site are streamed live to one of three monitors that make up the work station ofthe traffic officers.

page eleven

Director’s Report

Corporate Governance

The Board of Directors of Mackay Sugaris responsible for the corporategovernance of the Association and thefollowing statement outlines the principalgovernance practices in place during thefinancial year under review.

(a) Board of DirectorsIn accordance with the rules of theAssociation the Board is comprised ofnine non-executive Directors, seven ofwhom are elected by shareholders andtwo "... with special skills, whose servicesare considered to be of benefit to theAssociation ..." appointed by the electedBoard members.

Elected Directors serve on the Board forthree years, with elections being held ineach consecutive year of each three yearperiod for the two directors, two directors,and three directors respectively whoshall have been longest in office. Electionsare conducted at each Annual GeneralMeeting.

(b) Board ResponsibilitiesThe Board of Directors guides andmonitors the business and affairs ofMackay Sugar on behalf of shareholdersensuring they are conducted in a propermanner. The Board is responsible toshareholders for:

• the overall performance of MackaySugar and the charting of itsdirection and objectives;

• developing the strategies andpolicy guidelines to achieve theseobjectives;

• monitoring key performanceindicators of the business;

• maintaining a high standard foraccountability for all activities ofMackay Sugar including compliancewith laws and ethical behaviour;

• ensuring that risks are identifiedand that appropriate r iskmanagement procedures are inplace; and

• protecting shareholders’ interestsand making sure they are keptfully informed.

Day analyst in the laboratory at Farleigh Mill Shelley Skien (front) and cane auditor Tracey Bachman examineanother bagged sample of Farleigh’s high quality sugar. Each two thousand tonnes of sugar acquired by QueenslandSugar Limited from mills is sampled to determine quality and these two kilogram bags are a representative sample.A matching two kilogram bag is sent to the Amdel Laboratories for analysis and determination based around tendifferent quality parameters. Compliance with all ten parameters will attract the maximum premium bonus of $5per tonne that equates to $10 000 for each 2 000 tonnes delivered.

page twelve

Director’s Report

In fulfilling this role the Board overseescompliance with the requirements of theregulators and ensures that appropriaterisk management and associated internalcontrols are in place. The Board maydelegate authority to management, butnot responsibility.

Current practice calls for the Board tomeet eleven times during the year atapproximately monthly intervals.However this may be varied by theDirectors who can also add othermeetings when deemed necessary.

(c) Board CommitteesAlthough the Board generally operatesas a whole across the range of itsresponsibilities, Directors also serve onone or more of the ten committees setup to support the Board in its work andto provide a more detailed focus for itsgovernance responsibilities.

The role of these committees is toconsider in advance or in more detail,matters subsequently addressed by thewhole Board.

The membership of these committeesas at 30 June 2004 and a brief descriptionof their respective roles follows. Whereappropriate the committees also havesenior management as members.

• The Audit Committee is comprisedof Messrs I L Fraser, A Barfield, SGordon and B B Sheedy and assiststhe Board in fulfilling its financialresponsibilities relating to the generalaccounting p r a c t i c e s o f t h eAssociation. The committee servesas an independent and objective partyto review the financial informationpresented by Mackay Sugar toshareholders, regulators and thegeneral public and determines theadequacy of the Association’soperating, accounting and auditcontrols.

• The Finance Committee establishescorporate governance of theAssociation’s financial functions notcovered by the Audit Committee. WithMessrs C E Westcott, B B Sheedy, AS Cappello and R S Galea as Director

Members, this committee reviewsoperating and capital budgets priorto submission to the Board andmonitors Mackay Sugar’s overallfinancial position regarding net debt,borrowing and interest rates. Long-term planning responsibilities includeensuring financial forecasts areconsistent with the Strategic Plan,and that sufficient funding is availableto meet Association needs.

• The Compliance Committee whichhas Messrs A R Amer, S Gordon, andM A Volker as Members has beenestablished to assist the Board ofDirectors in fulfilling its governanceand oversight responsibilities foroccupational health and safety andfor environmental management.

• The Structure/Ownership SharesCommittee has all board membersas part of the committee. Thiscommit tee i s charged wi thinvestigation of alternative modelsand changes which would ensure thatthe structure of the Associationremains appropriate to changingcircumstances.

• The Remuneration Committee hasMessrs C E Westcott, B B Sheedy andA Barfield as members and reviewsremuneration policies and proceduresand establishes staff salary packages.

• The Water Conserva t ionCommittee includes Messrs A SCappello, R S Galea, S Gordon andM A Volker as Director Members andaims to increase supplies of affordableirrigation water for the Mackay Sugararea.

• The Siding Committee comprisesMessrs B B Sheedy, R S Galea,M A Volker and A S Cappello and isresponsible for addressing mattersdealing with the maintenance andconstruction of sidings, the efficienttransport of cane to the mills, binconversions and property matters.

• The Housing Committee has B BSheedy and A Barfield as membersand was formed to oversee the sale

CE WestcottChairman

BB SheedyDeputy Chairman

page thirteen

Director’s Report

of surplus mill houses and land.

• The Cogeneration Committee ismade up of C E Westcott and B BSheedy working with variousmembers of the Association’s seniorstaff. The role of the committee is toassist the Board of Directors in fulfillingits governance and oversightresponsibilities for the decision onthe Racecourse Cogeneration projectand to identify and quantify the risksassociated with the project.

• The Leasing Committee comprisesB B Sheedy, A S Cappello and R SGalea as director members and wasformed to facilitate farm leasing underthe restructure package.

(d) Risk ManagementIn order to ensure that key business andfinancial risks which could affect MackaySugar are effectively managed, theAssociation has in place a managementprogram for Mackay Sugar’s people,processes and property. This is operatedin conjunction with Transfield Services.

(e) Management StructureThe management of the Association, itsoperations and administration, isdelegated by the Board to the ChiefExecutive, who is supported by a teamof managers.

This team operates within an agreedframework of strategic plans, budgets,targets, standards and policies approvedby the Board which maintains appropriateservices, procedures and internalmechanisms to ensure that managementand employees act efficiently and in thebest interests of shareholders.

(f) Code of EthicsMackay Sugar is committed tomaintaining the highest ethical standardsin all of its operations. Directors andemployees are expected to act with theutmost integrity and objectivity tomaintain the Association’s reputation.

Indemnification of OfficersThe Association has paid premiums toinsure Directors and Officers againstliabilities for costs and expenses incurredby them in defending any legalproceedings arising out of their conductwhile acting for the Association, otherthan conduct involving a wilful breachof duty in relation to the Association.

Rounding of AmountsThe Association has applied the reliefavailable to it in Australian SecuritiesInvestment Class Order 98/100 and,accordingly, amounts in this report andassociated financial statements havebeen rounded to the nearest thousanddollars where appropriate.

Signed at Mackay on behalf of the Board this twenty-third day of September 2004.

page fourteen

Concise Financial Report

Discussion & Analysis of Financial Statements

This discussion and analysis is provided to assist members to understand thefollowing financial report.

Statement of Financial Performance

The net loss before income tax for the 2003/04 financial year is $8.226 millionwhich was a reduction of $19.821 million on the previous year’s result. There wasno income tax and no movement in the asset revaluation reserve during the year.

Income from the milling business declined significantly compared to the previousyear due to a reduction in the crop and sugar price. The drought affected 2003season crop of 5.128 million tonnes was down 18% on the 2002 season crop. Thesugar price was down by $44.82 per tonne IPS sugar with the price paid byQueensland Sugar Limited for the 2003 season crop of $231.88 per tonne IPS sugar,compared to the 2002 season’s price of $276.70 per tonne. Income from molassessales was also lower as a result of lower world export prices and the reduced crop.Included in other revenue is the first tranche of the government sustainability grantof $4.09 million. The second tranche is due to be received in January 2005.

The refining business in both Australia and New Zealand recorded decreased earningscompared to the previous year due to a reduction in sales and margins.

Overhead costs decreased compared to last year, whilst borrowing expenses increasedwith higher interest rates and lower levels of cash invested on the money market.

Depreciation for the 2003/04 financial year of $9.154 million was down 15.5% tothe previous year. This occurred due to the reduction in tonnes of cane on whichthe depreciation rates are based. In the 2002/03 financial year the depreciationmethod was changed from a time basis to an output basis to reflect a more realisticdepreciation level with the closure of Pleystowe Mill.

Statement of Financial Position

Net debt increased by $1.4 million to $61.8 million. Net debt was made up of RaboBank Loans of $54.0 million and IBDs of $26.0 million, offset by Grower Loans of$3.3 million and Cash of $14.9 million. Total Members Equity decreased by $8.226million to $266.622 million as at the 30th June 2004 as a result of the loss incurredfor the year. Other than this, there were no major changes to the Statement ofFinancial Position.

Statement of Cash Flows

Cash flows from operating activities decreased by $22.4 million to a deficit of $1.5million due mainly to the reduction in sugar sales. Capital expenditure was againtightly controlled at $2.1 million compared to the previous year at $2.5 million.

The Sugar Australia joint venture’s cash flow was $4.2 million in excess of its profitcompared to the previous year’s figure of $2.5 million. This shows in the cash flowas an investing activity as it reduces the value of our refining investment.

Movements from financing activities were made up of $2.0 million in payments forborrowing expenses, repayments by shareholders of plant loans of $3.2 million, andrepayment of term debt of $12.0 million. Interest Bearing Deposits remained stablethroughout the year and Cash on hand decreased by $10.4 million to $14.9 million.

Note 2004 2003$'000 $'000

Sales 2 180 375 276 120Cane purchases and allowances (109 576) (173 025)

---------------------------------------- --------------------------------------

Gross Profit 70 799 103 095Other revenues 2 9 625 5 331Maintenance (29 690) (30 855)Operating (23 267) (29 223)Overheads (27 711) (29 066)Borrowing expenses (6 638) (5 941)Depreciation (9 154) (10 841)Share of net profits of associates and jointventures accounted for using the equity method 7 810 9 095

---------------------------------------- --------------------------------------

Profit (Loss) from ordinary activities (8 226) 11 595and before income tax

Income tax expense relating to ordinary activities - 983---------------------------------------- --------------------------------------

Net Profit (Loss) from ordinary activitiesafter income tax expense attributable tomembers of the Co-operative (8 226) 12 578

---------------------------------------- --------------------------------------

Net increase (decrease) in asset revaluation reserve - ----------------------------------------- --------------------------------------

Total changes in equity other than thoseresulting from transactions withowners as owners (8 226) 12 578- --------------------------------------- --------------------------------------

The accompanying notes form part of this concise financial report.

page fifteen

Concise Financial Report

Statement of Financial Performancefor the year ended 30 June 2004

Statement of Financial Positionfor the year as at 30 June 2004

page sixteen

Concise Financial Report

2004 2003$'000 $'000

ASSETSCurrent AssetsCash 14 916 25 285Receivables 17 245 18 036Inventories 9 071 8 578Other 129 121

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Total Current Assets 41 361 52 020---------------------------------------- --------------------------------------

Non-Current AssetsReceivables 354 3 646Property, plant and equipment 242 085 249 220Other financial assets 16 797 16 797Investments accounted for using the equity method 64 309 68 343Intangibles 2 493 1 113Other - 238

---------------------------------------- --------------------------------------

Total Non-Current Assets 326 038 339 357---------------------------------------- --------------------------------------

TOTAL ASSETS 367 399 391 377---------------------------------------- --------------------------------------

LIABILITIESCurrent LiabilitiesPayables 16 253 19 380Interest bearing liabilities 39 966 92 108Provisions 1 266 1 307

---------------------------------------- --------------------------------------

Total Current Liabilities 57 485 112 795---------------------------------------- --------------------------------------

Non-Current LiabilitiesPayables 822 1 369Interest bearing liabilities 40 000 -Provisions 2 470 2 365

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Total Non-Current Liabilities 43 292 3 734---------------------------------------- --------------------------------------

TOTAL LIABILITIES 100 777 116 529---------------------------------------- --------------------------------------

NET ASSETS 266 622 274 848---------------------------------------- --------------------------------------

MEMBERS' EQUITYContributed equity 1 1Asset revaluation reserve 82 597 82 597Retained profits 184 024 192 250

---------------------------------------- --------------------------------------

TOTAL MEMBERS' EQUITY 266 622 274 848---------------------------------------- --------------------------------------

The accompanying notes form part of this concise financial report.

2004 2003$'000 $'000Inflows Inflows

(Outflows ) (Outflows)

Cash flows from operating activities

Receipts from sugar sales and other sales 181 302 272 796Payments to members for cane supplied (109 116) (171 525)Payments to suppliers and employees (81 549) (86 895)Distributions received from associated entities 7 651 9 500Interest received 1 187 1 471Other revenue 5 645 1 514Interest paid (6 638) (5 941)

---------------------------------------- --------------------------------------

Net cash provided by (used in) operating activities (1 518) 20 920---------------------------------------- --------------------------------------

Cash flows from investing activities

Proceeds from financial assets - 2 867Distributions received from associated entities 4 193 2 527Payments for property, plant and equipment (2 295) (2 688)Proceeds on sale of property, plant and equipment 240 179

---------------------------------------- --------------------------------------

Net cash provided by (used in) investing activities 2 138 2 885---------------------------------------- --------------------------------------

Cash flows from financing activities

Payments for borrowing Costs (2 003) -Repayment of borrowings (12 000) (5 000) Decrease in growers’ loans 3 156 3 464Decrease in unsecured deposits (142) (7 965)

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Net cash provided by (used in) financing activities (10 989) (9 501) ---------------------------------------- --------------------------------------

Net decrease in cash held (10 369) 14 304Cash at 1 July 2003 25 285 10 981

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Cash at 30 June 2004 14 916 25 285---------------------------------------- --------------------------------------

The accompanying notes form part of this concise financial report.

page seventeen

Concise Financial Report

Statement of Cash Flowsfor the year ended 30 June 2004

g

page eighteen

Concise Financial Report

Notes to the Concise Financial Reportfor the year ended 30 June 2004

The directors of Mackay Sugar Co-operative Association Limited declare that the concisefinancial report of the Co-operative for the financial year ended 30 June 2004, as set out onpages 8 – 18:

(a) complies with Accounting Standard AASB 1039: Concise Financial Reports; and(b) has been derived from and is consistent with the full financial report of Mackay Sugar

Co-operative Association Limited.

This declaration is made in accordance with a resolution of the Board of Directors.

Note 1: Basis of preparation of the Concise Financial Report

2004 2003$’000 $’000

Operating ActivitiesSales 180 375 276 120Share of associated companies operating profit 3 227 3 625Share of joint ventures operating profit 4 583 5 470

---------------------------------------- --------------------------------------

188 185 285 215

Interest received 1 187 1 471Other revenue 8 438 3 860

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Total Other Revenues 9 625 5 331---------------------------------------- --------------------------------------

Total revenue per Statement of Financial Performance 197 810 290 546

Non-operating RevenueProceeds on sale of non-current assets 240 179

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Total Revenue 198 050 290 725---------------------------------------- --------------------------------------

The concise financial report has been prepared in accordance with Accounting StandardAASB1039: Concise Financial Reports, and the Corporations Act 2001.

The financial statements, specific disclosures and other information included in the concisefinancial report are derived from and are consistent with the full financial report of Mackay SugarCo-operative Association Limited. The concise financial report cannot be expected to provide asdetailed an understanding of the financial performance, financial position and financing andinvesting activities of the co-operative as the full financial report.

The accounting policies have been consistently applied and are consistent with those of theprevious financial year.

Note 2: Revenue

Directors’ Declaration

Dated this twenty-third day of September 2004.

C E WestcottChairman

I L FraserDirector

page nineteen

Bennett Partners

First Floor, 122 Wood StreetPhone: (07) 4951 1455

e-mail: enquiries@bennettpartners.com.au

P.O. Box 92, Mackay. 4740Fax: (07) 4951 4824website: www.bennettpartners.com.au

Partners:Darryl CamilleriDavid WattsChris SammutPaul Hinton

Bennett & Camilleri Pty.

ACN 010 430 314

ABN 65 010 430 314

Chartered AccountantsABN 59 281 397 611

24 September, 2004

Independent Audit Report to the Members of

Mackay Sugar Co-operative Association Limited

Scope

We have audited the concise financial report of Mackay Sugar Co-operative Association Limited for thefinancial year ended 30 June 2004 in order to express an opinion on it to the members of the co-operative.The Association’s Directors are responsible for the concise financial report.

Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonableassurance whether the concise financial report is free of material misstatement. We have also performedan independent audit of the full financial report of Mackay Sugar Co-operative Association Limited forthe year ended 30 June 2004. Our audit report on the full financial report was not subject to anyqualification.

Our procedures in respect of the audit of the concise financial report included testing that the informationin the concise financial report is consistent with the full report, and examination on a test basis, of evidencesupporting the amounts, discussion and analysis, and other disclosures which were not directly derivedfrom the full financial report. These procedures have been undertaken to form an opinion whether, inall material respect, the concise financial report is presented fairly in accordance with Accounting StandardAASB 1039: Concise Financial Reports.

The audit opinion expressed in this report has been formed on the above basis.

Audit Opinion

In our opinion, the concise financial report of Mackay Sugar Co-operative Association Limited complieswith the Accounting Standard AASB 1039: Concise Financial Reports.

BENNETT PARTNERS DARRYL CAMILLERI

Auditor’s Report

Partner

Glossarypage twenty

BagasseThe residue after extraction of juices from cane in one or more mills in a sugar mill.

CaneThe raw material delivered to a sugar mill by a farmer for processing into raw sugarand molasses.

Cane Production Area (Assignment)A cane production area entitles a grower to enter a supply agreement with a particularmillowner for the supply of cane grown on a particular number of hectares situatedwithin the boundaries of land of a particular description.

CCSCommercial Cane Sugar or CCS is a measure of the percentage of cane sugarrecoverable as pure sugar. Each delivery of a farmer’s cane is sampled and analysedto determine its CCS content.

IPS/International Pol ScaleIPS is a measure of the commercial value of raw sugar.

MolassesMolasses is a by-product of the sugar milling and refining processes. It is a brownviscous syrup and is used for stockfeed and fermentation purposes.

Molasses Percent CaneMolasses percent cane is the tonnage of molasses produced from each 100 tonnesof cane.

Mud/Mill MudMud/mill mud is the residue discharged from the mud filters in a sugar mill afterthe clarification of cane juice.

Polarisation/PolThe sucrose content of sugar, e.g. “98 pol” sugar would contain about 98 percentsucrose.

Raw SugarRaw sugar is the straw coloured impure crystalline sugar produced by a sugar mill.It usually contains 98-99 percent sucrose and is not considered fit for humanconsumption.

Refined Sugar/White SugarRefined or white sugar is produced by the further processing of raw sugar to food-grade standards and contains almost 100 percent sucrose. Refined sugar is theproperty of the refiner and is marketed direct to customers.

Mackay Sugar Co-operative Association LimitedABN 12 057 463 671

Corporate OfficePeak Downs Highway,

Racecourse, via MackayPO Box 5720,

Mackay Mail Centre,Queensland 4741 Australia

Phone (07) 4953 8200Facsimile (07) 4953 8340

Web: www.mkysugar.com.auEmail: info@mkysugar.com.au

Business ServicesFarleigh/Miclere Road, Farleigh, via Mackay

PO Box 5720, Mackay Mail Centre, Queensland 4741Phone (07) 4953 8800

Facsimile (07) 4953 8888

Field & Factory OperationsEungella Road, Pleystowe, via Mackay

Post Office Pleystowe, Queensland 4741Phone (07) 4953 8555

Facsimile (07) 4953 8590

Principal Photography: Daryl Wright • Printing: Payne Print

David Falknau - Dave Falknau had been involved in the production of every Mackay Sugar Annual Report since incorporation in 1988.He designed Mackay Sugar’s original logo in 1988. Dave passed away in April 2004 after a short illness.

PAYNE PRINT