CANEGROWERS in Plane Creek cane growing district are in shock today after Wilmar Sugar, the owner of Plane Creek and Proserpine mills, announced it had given notice to industry marketing body Queensland Sugar Limited (QSL) that it will cease utilising its sugar marketing services by end of harvest 2016.
Canegrowers Mackay chairman Kevin Borg, himself a Wilmar Sugar grower, said Wilmar Sugar gave notice to the industry supported QSL without consultation with its most relevant stakeholders – cane growers.
“This is a great disappointment,” Mr Borg said.
“This announcement comes without any recognition for growers in the supply chain.”
Mr Borg said this move was even more disappointing considering industry had been working collaboratively on many platforms to support QSL, the organisation that had been the industry’s mainstay in selling Australia’s sugar on the world market for the benefit of growers.
“QSL has long delivered the marketing services for our sugar industry production on a reliable, transparent and risk-averse basis,” he said.
“In the past support for QSL has been paramount to the success of our industry, making it the envy of the rest of the world for its ability to market sugar with the best possible return for risk taken.
“It seems that discussions held in recent times have failed to convince millers that cane growers have a two-thirds economic interest in the production of the crop.”
Growers invested in the vicinity of $600 million per annum to grow their crops per annum to grow their crops taking the brunt of risk for the industry with pest, disease and weather, Mr Borg said.
“It seems Wilmar is claiming ownership of the entire crop without recognising the investment made by its major stakeholders.”
Mr Borg said growers would be strongly urging Wilmar Sugar to reconsider its position on this matter.
“In a press release issued by Wilmar Sugar today, it says they are looking forward to meeting with growers to conduct information and consultation sessions next week – since the decision has been made to exit QSL without consultation - it certainly looks like they’ve put the cart before the horse.
“We will be seeking reconsideration urgently so collectively we can continue to run our industry on a risk-for-reward basis that includes all who invest heavily in the sugar industry’s very competitive world market and environment – and that includes growers,” Mr Borg said.
