After much soul searching I cannot sit back any longer and allow a blatant lie by CSR’s Managing Director to the market and shareholders to go unchallenged – “CSR’s results for the half year have been significantly impacted by the delays in sugar milling returns as a result of wet weather,” said CSR Managing Director and CEO Alec Brennan.

As an employee of CSR in the Burdekin district (Australia’s largest sugar producing region), where CSR owns all four sugar mills in the district, I can tell you “wet weather” was not a factor. Please feel free to check BOM records for proof. The problem with sugar production in the Burdekin District has been due to:

  1. A major cost blow-out and badly managed upgrade of Pioneer Mill’s Co-generation Project.
  2. Major breakdowns at the other three Burdekin Mills – Kalamia, Invicta and Inkerman – due to cost-cutting and lack of maintenance.
  3. Increased repair costs/time due to lack of skilled tradesmen from lowering of employee numbers
  4. Poor management of maintenance personnel, maintenance tasks and introductions of procedures/policies that restrict and impede efficiency of work teams.

Points 2-4 also apply to the two Herbert District Mills. Please check the weather records for yourself.

Surely the statement of Alec Brennan could be classed as misleading the market. These people should be, and need to be, held accountable.