The state government announced a $12.1 million Mossman Region Transition Program to help mill workers secure new jobs and support in the wake of liquidation.
This comes after an end to negotiations between a potential investor.
The 127-year-old Mossman mill's parent company, the Daintree Bio Precinct Group, had been facing liquidation since going into voluntary administration last November, 2023.
The company received a lifeline on February 29, 2024, when creditors supported a proposal put forward by an unnamed investor who stepped in at the last minute with plans to save the mill.
However, last Friday, the community was told that those plans had fallen through, with investor Clever Power Pty Ltd backing out of the deal just before the end of a 15-business day statutory deadline.
Canegrowers CEO Dan Galligan called on the state Government to honour its commitment to provide $12.1 million in funding to support workers and farmers.
"Growers have already invested more than $14 million into this year's crop and the harvest is rapidly approaching," Mr Galligan said.
"We need the government to come through on its funding commitment so that growers can recoup as much of that money as possible, otherwise a lot of families and businesses in the town will go to the wall."
The Miles government announced on Friday following the news the mill would begin the process of shutting down production, it would take immediate action to assist affected workers through a $12.1 million program.
Actions under the program will include an information session assisting workers, formation of the Mossman region stakeholder advisory committee and commencement of a regional transition opportunities study.
Committee members will include representatives from Douglas Shire Council, Douglas Chamber of Commerce and Mossman Canegrowers as well as Queensland and Australian Government agencies.
State Development and Infrastructure minister Grace Grace said the program will help affected mill workers transition into new jobs.
"The Miles government has taken swift action to secure the future for the Mossman workers to provide certainty for workers, farmers, businesses and other community members," Ms Grace said.
"Our Mossman Region Transition Program has now been activated and our people are on the ground ready to help.
"We will bring together all the service providers who can help mill workers transition into new jobs, access training and upskilling and gain counselling support.
"We will also be forming a Mossman Region Stakeholder Advisory Committee so we work directly with locals on what they need to ensure Mossman has a bright future."
An information session will be held on Wednesday March 27 at the Port Douglas Community Hall, Mowbray Street, Port Douglas between 10am and 1pm.