Sugar task force a sweetener for growers

Canegrowers are hopeful a new federal government investigation into the sugar industry will protect them from monopolistic millers.

Agriculture Minister Barnaby Joyce says a new task force, chaired by fellow Nationals MP George Christensen, will determine whether a code of conduct is needed for industry competition and marketing.

Cane farmers are concerned by the exit of the country's three biggest sugar mills from a long-held arrangement that gives them a choice on how their sugar is priced and sold with marketer Queensland Sugar Limited.

They've lobbied the government hard against the move because it will mean companies like Wilmar, MSF and Tully Sugar will be able to market their sugar themselves - leaving them without a say in the mechanism by which they get paid and potentially lower returns.

It's the third investigation of the issue, with separate Queensland state government and Senate inquiries also under way.

Peak body Canegrowers hopes the three investigations will result in a single outcome that ultimately protects growers from an industry monopoly, with Wilmar and MSF together controlling 60 per cent of local production.

Chairman Paul Schembri says he's optimistic the federal government will provide further protections for growers under commonwealth competition laws.

"If the millers are successful, the growers are at a serious commercial disadvantage," he told AAP.

The task force will also consider whether a code of conduct should determine marketing transparency, bargaining arrangements between mills and growers and state and federal competition laws.

It will report back to Mr Joyce by May 2015 - a month after the delayed Senate report is due for release.