CANE farmers are urging Wilmar Sugar and Queensland Sugar Limited (QSL) to commit to negotiate their way past their current impasse on a crucial sugar marketing contract.
CANEGROWERS chairman Paul Schembri said growers needed the two organisations are needed to reach an On-Supply Agreement (OSA) so growers could finalise Cane Supply Agreements (CSA) with the miller for the 2017 season.
Without the agreements being finalised growers are unable to take advantage of currently attractive forward prices for sugar.
“But time is running out,” Mr Schembri said. “The season will start in around 16 weeks and 1500 farmers are in limbo with the economic future of their businesses at risk.”
Today the Queensland LNP gave Wilmar and QSL 48 hours to commit to finalising the OSA before February 28. If the two organisations could not reach agreement the LNP would introduce further amendments to the Queensland Sugar Industry Act.
“This act had to be amended in December 2015 to prevent millers from creating regional sugar marketing monopolies, to secure choice for growers and competition in the provision of marketing services,” Mr Schembri said.
“Since then, six of the seven sugar milling companies operating in Queensland have negotiated commercial agreements with growers and QSL which allow the 2017 season to proceed.
“Only Wilmar has been unable to do this.
“Frustration and anxiety levels are sky high in the four cane growing regions where Wilmar owns mills but our growers are determined to stand together.
“They want nothing less than a CSA which guarantees the marketing choice they are entitled to under the legislation.”
