More incentives for farmers would be a reward for increased production.

The peak representative for sugarcane growers in Australia, Canegrowers, considers the provision of incentives as a crucial step in boosting production levels. The sugarcane organization thought of a reward system after sitting with the farmers meeting with Wilmar International Limited (SIN: F34) early this week.

Wilmar is an investment holding company that is involved in merchandising and processing of palm oil and laurics. It also manufactures and distributes fertilizer products and ship-chartering services.

The Singapore-based company recently signed a deal to purchase CSR Limited's (CSR) sugar division Sucrogen.

Canegrowers chairman Alf Cristaudo said, “We were able to find in our discussions with these people (farmers) they have a philosophy of working with and in joint ventures.” The farmers, he added, “like operating in partnerships and they appreciate in a business like ours that the growers are genuine partners in this business.”

Cristaudo also noted farmers to be eager to increase the volume of sugarcane once the business expands. He said, “They want to work with growers and create some incentives for growers to go out there and expand their operations and to grow more sugar cane.”

The farmers were reported to appear satisfied with the meeting. Details about what the company will do with mills, however, were not yet certain.