The Shire has been, and still is, reliant on its agricultural base, with movement toward expansion and creation of new industries. There is potential for increased tourism in the Shire from promotion of existing and potential attractions. However, for new industries to prosper, the Shire must have adequate accommodation, retail, service and professional businesses to meet their needs.

Sugar Production

The Innisfail district has suffered heavy cane and sugar losses from adverse weather conditions in 1998, 1999 and 2000. The industry also suffered from the detrimental effects of declining Commercial Cane Sugar (CCS) for over 5 seasons. Grower incomes have fallen and production costs have continued to increase, resulting in severe economic hardship for the industry. Losses in the sugar industry have a flow on effect and are detrimental to the economic well being of the Shire.

At the end of 2000 the South Johnstone Sugar Mill was placed in receivership, having debts of some $15 million. This is further bad news for the shire community and there may be further industry rationalisation possibly involving closure of a mill.

General Statistics (Johnstone Shire):

The following responses have been proposed to improve the current situation:

•   Support for ethanol production - Council is fostering and facilitating the possible development of an ethanol industry in the Shire.
•   Sugar Industry Assistance Package - interest subsidies on loans, family relief payments, Farmbiz Programs, and vouchers to access financial counselling services
•   Innisfail-Babinda Sugar Industry Strategic Planning - maximise long term wealth of the industry through strategic planning and management processes, implemented co-operatively
•   CP2002 Accelerated Enhancement of Productivity and Profitability for the Australian Sugar Industry to manage declining sugar content, pest control and associated productivity issues.
•   BSES Far North Queensland Improving CCS Program - changes to the breeding program