MACKAY Sugar has an agreement to acquire an additional 1000 hectares of cane land in the Mackay district, under the farming entity Racecourse Projects.
Racecourse Projects, which comprises Mackay Sugar and Black River Asset Management, will acquire a portion of the Barnganal Farm from Mackay's Borg family.
The farm, which is situated in the Blue Mountains area (inland of Mackay), offers 140ha of established, irrigated cane land.
But Racecourse Projects will seek to develop an additional 900ha in the next two years.
This would ultimately deliver 85,000 tonnes of additional cane to Mackay Sugar's mills.
Mackay Sugar CEO Quinton Hildebrand said the agreement reaffirmed Mackay Sugar's commitment to cane expansion and to increase throughput and profitability.
"Through offering incentives to growers, we have added 1500ha to the supply of the Mackay mills," Mr Hildebrand said. "The Barnganal property offers us the opportunity to develop new cane land that will increase our supply."