CANEGROWERS supplying MSF Sugar mills are the first in Queensland to be guaranteed choice in sugar marketing following the signing of two new agreements.
CANEGROWERS chairman Paul Schembri said it was the final piece of a new structure for MSF Sugar and growers who reached the historic first new Cane Supply Agreements (CSAs) in May under the Sugar Industry (Real Choice in Marketing) Amendment Bill 2015 that sparked fierce debate.
“It proves that the legislation passed by the Queensland Parliament in December 2015 is both workable and practical when approached with the right attitude,” Mr Schembri said.
“A lot of dire predictions were made during the debate on sugar marketing but, far from putting jobs in peril or stifling investment, the legislation has allowed MSF Sugar and growers to get on with business and invest with confidence.
“MSF Sugar has committed tens of millions of dollars to new green fuel plants in Queensland. The company is also investing in programs to assist growers with their productivity, profitability and sustainability and has put its own farms through the accreditation process for Smartcane BMP, the industry’s best practice program which will prove our environmental credentials to sugar customers around the world.”
Those dire predictions continue to be issued by Sugar Millers Council chief executive officer Dominic Nolan, who said the Real Choice in Marketing legislation was a disaster for the sugar industry.
“We are still to see any benefit from legislation that decreases the competitiveness of the millers and increases the commercial risk for all participants in the industry,” Mr Nolan said.
“The legislation is flawed and ambiguous and will costs both growers and millers millions in lost revenue.
“It ultimately has to go.”
However, Mr Schembri said growers in the Maryborough, Cairns and Tableland districts who have signed new Cane Supply Agreements with MSF Sugar could now choose between a sugar marketing pathway offered by the miller and one offered by QSL.
“Importantly, growers in those districts can now secure pricing for 2017 with a marketer of their choice,” he said. “It is a sweet step forward in the campaign we have waged against plans which would have forced growers supplying three of the biggest milling companies down a single, mill-owned marketing pathway.
Mr Schembri said Wilmar Sugar and Tully Sugar should look closely at these landmark agreements.
“They prove that the legislation is workable and that commercial solutions can be found that benefit all sectors in the industry,” he said.
“The time for delays and frustrations is over. All of our members have the right to marketing choice and to face the future, and the 2017 season, with contracts in place.”
QSL chief executive officer Greg Beashel said the new agreement enabled growers with a Cane Supply Agreement with MSF Sugar to choose QSL as the marketer of their Grower Economic Interest in sugar (GEI Sugar) and access QSL’s pricing products for the 2017 season and beyond.
“Growers in the Tablelands, Mulgrave, South Johnstone and Maryborough milling districts can find the necessary information about QSL’s pricing products and how they can choose QSL as their GEI Sugar Marketer by visiting our website,” he said.
“We’ll also be sending growers QSL Marketing Choice Information packs in coming days and will host a series of local information events to explain the new Marketing Choice process and answer any questions growers may have about this or the 2017-Season pricing products they can now access.”
CLICK HERE for more details regarding QSL's Marketing Choice arrangments for MSF Sugar growers.