The economic climate for the sugar industry in recent years has been challenging as international competition has suppressed process received and costs have increased - the industry is experiencing a cost-price squeeze. Growers have sought to diversify income streams to increase cashflow and manage risks, while the milling sector has sought to diversify income streams through the establishment of complementary outputs where possible.

The industry is also under pressure to meet consumer and community concerns around sustainability, off-farm environmental impacts of farming, demands for more natural production systems and health concerns of consumers.

A number of green market initiatives have emerged in Australia in recent years to help improve the supply of environmental services from agricultural landscapes. This project will identify and evaluate the potential for the sugarcane industry to engage with green markets.