WILMAR should be "ready for a fight on a scale not seen before" in the Australian industry, says industry group Canegrowers, as farmers prepare to convince the miller to stay within the industry-owned Queensland Sugar Limited (QSL) marketing model.
Last month Wilmar announced it would exit the current QSL export marketing arrangements and set up its own commercial model tied to its global trading operation, one of the world's biggest sugar businesses.
Wilmar has capacity to crush about 50 per cent of Australia's sugar cane destined for export thanks to its 2010 takeover of Sucrogen's seven (formerly CSR) mills, plus acquisition of the Proserpine mill in 2011.
Cane farmers have rallied strongly at a series of meetings held in the four Wilmar mill areas this month, all resulting in unanimous motions condemning Wilmar’s unilateral decision to withdraw from QSL, and demanding that growers be given their choice of marketer, which would be stripped away under Wilmar’s current proposal.
Meetings at held at Herbert, Proserpine and Plane Creek, and in the Burdekin Valley were organised by Canegrowers to break down Wilmar's claims, evaluate the real cost and develop an industry response.
Canegrowers has also launched a social media campaign on Twitter (#saynototwilmar) and Facebook, and has set up on online petition.
A statement from Canegrowers released on Friday said the unanimous motions at each meeting clearly state that, as far as they are concerned, the current proposal denies growers of their rights and that growers are calling for a genuine commercial relationship – one that provides transparency and a real say in the marketing of their (Grower Economic Interest) sugar. They are demanding growers continue to be able to sell their sugar through QSL.
"It’s just the latest in a rising tide of dissatisfaction by growers in the proposal put to them by Australia’s largest milling group Wilmar last month," Canegrowers said.
"Now the reality of what the proposal actually means for growers has come to light, cane farmers across Queensland are rising up in droves to fight for their future profitability."
Canegrowers has been "overwhelmed" by a flood of letters from growers, demanding that Wilmar gives growers the right to choose a marketer for their two-thirds of the sugar, with hundreds more coming in daily.
Canegrowers chairman Paul Schembri said growers are angry that Wilmar says its consultative meetings have been constructive.
“If Wilmar was genuinely listening to grower feedback, they would have changed their proposal by now to allow growers a choice of marketer for their two-thirds share of the sugar - they would have corrected their unpopular plan to strip away the growers only trusted marketing and pricing body which gives them unrivalled transparency,” Mr Schembri said.
“Our growers are rising up to say that they will pursue every avenue and angle. They will not have their rights stripped away – even by a large corporate entity such as Wilmar.
"If it sounds like an emotional and passionate call to arms, that’s because growers are equating this to their future profitability and their ability to continue to stay on the land.
“Margins are tough enough on the land, without allowing a system under which they couldn’t be sure whether they were getting their fair share of the return.
“The implications for competition identified by industry have further steeled our growers’ resolve to line up to the fight.
"While the notice by Wilmar is for three years hence, growers are not wasting any time in making what they need clear to Wilmar now.
"2016 isn’t that far away in the life of a farm.”