School of Economic and Information Systems, University of Wollongong
Abstract
The coastal Queensland regions are heavily dependent upon the sugar industry and are likely to remain so. The interplay between sugar industry and regional development is little understood beyond the historical record. Yet current reform proposals place great store on regional initiatives to rejuvenate both sugar and its host communities. Such proposals are at best naïve as will be seen in this paper. A key feature of sugar and like industries is a high degree of supply chain interdependence which is embedded in place and time. Reflecting this, sugar regions have a more diverse skills mix and a more advanced manufacturing and services capability than many other agriculturally-oriented regions, notably broadacre grain and beef. Central to the emergence of such a regional industrial structure are inter-industry transactions. These will be considered in both an input-output framework and from a transactions cost basis. Associated insights point to the inadequacy and likely failure of initiatives based on current “efficiency/productivity‿ thinking. Alternative ways to view the industry are discussed along with a recommendation that those involved with sugar regionally revisit current plans
