TULLY Sugar Limited and QSL have announced their agreement to extend Tully Sugar Limited’s Raw Sugar Supply Agreement (RSSA) with QSL until June 2016.
In making the announcement, Mr Qin Yelong, President of COFCO Tuhne and a member of Tully Sugar’s Board of Directors, said the decision should give Tully growers confidence that the new owners of the company had grower interests at heart.
“A strong industry is built around a strong and respectful relationship between miller and growers,” Mr Qin said.
“We are conscious of the growth opportunities available in the Tully area at the moment and we are keen to finalise a new cane supply contract with growers that will provide opportunities for them to price sugar out to the 2015 season.”
Greg Beashel, Chief Executive and Managing Director of QSL, said QSL was pleased it would be able continue its strong relationship with Tully Sugar Ltd.
“We are working hard to deliver value to our milling partners and we are very pleased that we’ll be able to continue to work with Tully for the next three years, providing robust sugar marketing, pricing, financing and logistics services to them,” said Greg Beashel, QSL Managing Director and Chief Executive Officer of QSL.
"Our focus for the next three years will be on maximising returns for Tully’s raw sugar, which will in turn support the future growth and development of the Tully sugar industry more generally. We are currently forecasting a record Seasonal Pool return for the 2012 season of $500 to $525 per IPS tonne and the market outlook for the near future is very positive for Australian sugar, with strong demand from our Asian customers and market prices at elevated levels,” Mr Beashel said.
Tully Sugar Limited was acquired by Chinese Agribusiness Company COFCO Corporation, one of China’s largest food and agribusinesses, in July 2011.
