Cyclone Larry damages Australian sugar, banana crops

SYDNEY, Mar 20 (Reuters) A powerful cyclone pounded Australian sugarcane and banana farmlands today, flattening crops and slashing expected production, industry leaders told Reuters from the battered storm area today.

Cyclone Larry, rated maximum-strength category 5 with winds of nearly 300 kmh, crossed the far north Queensland coast over the sugar town of Innisfail this morning, damaging growing fields and buildings.

''There will be fairly significant damage to the cane crop ... It's been pretty severe around Innisfail,'' Alf Cristaudo, chairman of the Canegrowers organisation, told Reuters from Ingham, on the southern edge of the cyclone zone.

Sugar is by far the bigger of the two crops, and Australia is the third-largest exporter of raw sugar in the world.

But the effect on the smaller domestic banana industry was more severe.

Around 90 per cent of banana production would be wiped out in the Tully area near Innisfail, the centre of Australian banana production, said Tony Heidrich, chief executive officer of the Australian Banana Growers' Council.

This would cause domestic shortages and price rises, he said.

The full extent of damage to the sugar cane crop would not be known for some time, Cristaudo said, as farmers further north rode out the storm as it weakened and moved west.

The eye of cyclone Larry hours earlier scored a direct hit on Innisfail, the main town in an area which accounts for about 25 per cent of national sugar cane production in Australia, flattening and breaking the cane.

Cristaudo said it was too soon to give any official estimate of the extent of the damage.

Before Larry hit, Australia expected a slightly larger crop than last season, when around 38 million tonnes of cane produced 5.1 million tonnes of raw sugar, worth A SYDNEY, Mar 20 (Reuters) A powerful cyclone pounded Australian sugarcane and banana farmlands today, flattening crops and slashing expected production, industry leaders told Reuters from the battered storm area today.

Cyclone Larry, rated maximum-strength category 5 with winds of nearly 300 kmh, crossed the far north Queensland coast over the sugar town of Innisfail this morning, damaging growing fields and buildings.

''There will be fairly significant damage to the cane crop ... It's been pretty severe around Innisfail,'' Alf Cristaudo, chairman of the Canegrowers organisation, told Reuters from Ingham, on the southern edge of the cyclone zone.

Sugar is by far the bigger of the two crops, and Australia is the third-largest exporter of raw sugar in the world.

But the effect on the smaller domestic banana industry was more severe.

Around 90 per cent of banana production would be wiped out in the Tully area near Innisfail, the centre of Australian banana production, said Tony Heidrich, chief executive officer of the Australian Banana Growers' Council.

This would cause domestic shortages and price rises, he said.

The full extent of damage to the sugar cane crop would not be known for some time, Cristaudo said, as farmers further north rode out the storm as it weakened and moved west.

The eye of cyclone Larry hours earlier scored a direct hit on Innisfail, the main town in an area which accounts for about 25 per cent of national sugar cane production in Australia, flattening and breaking the cane.

Cristaudo said it was too soon to give any official estimate of the extent of the damage.

Before Larry hit, Australia expected a slightly larger crop than last season, when around 38 million tonnes of cane produced 5.1 million tonnes of raw sugar, worth A$2 billion (1.5 billion dollars) on export markets.

The cyclone-affected area also produces between 85 and 95 per cent of Australia's commercial bananas, worth between A$250 million and A$350 million a year.

The industry, which for years has battled bids by the Philippines to export bananas to Australia, would not agree to imports to cover cyclone production losses, Heidrich said.

''You would not want to import bananas that may carry a pest,'' he said. ''That would compound people's misery longer term.'' Cyclone damage to the banana crop would cause the loss of thousands of jobs, he added.

Reuters KD VP1020 billion (1.5 billion dollars) on export markets.

The cyclone-affected area also produces between 85 and 95 per cent of Australia's commercial bananas, worth between A0 million and A0 million a year.

The industry, which for years has battled bids by the Philippines to export bananas to Australia, would not agree to imports to cover cyclone production losses, Heidrich said.

''You would not want to import bananas that may carry a pest,'' he said. ''That would compound people's misery longer term.'' Cyclone damage to the banana crop would cause the loss of thousands of jobs, he added.

Reuters KD VP1020