Federal Agriculture Minister Barnaby Joyce has threatened to intervene in the impasse between Wilmar and Queensland Sugar Limited (QSL) if agreement is not reached by the start of the next cane harvest mid-year.
But Wilmar has hit back, warning further legislative intervention will only “frustrate the situation and damage the future prospects of the industry”.
Addressing hundreds of cane growers in Ingham and Ayr at separate meetings at the weekend, Mr Joyce said it would be “smart” for Wilmar to resolve the issue immediately.
The two entities have failed to come to terms on an on-supply agreement which allows growers a choice on a marketing agent for their sugar.
Mr Joyce told growers he preferred to have commercial disputes resolved without government intervention.
“If that doesn’t happen you have state legislation and if that doesn’t happen then we can go federally but the problem with that is it has to go through the whole process of parliament,” Mr Joyce said.
"If we have to go down that path, I can assure you that Wilmar will wish they had come to an agreement."
A spokeswoman for Wilmar said the company was “absolutely committed” to finalising a commercially reasonable agreement with QSL as soon as possible.
“Wilmar has made significant concessions in the course of negotiations, however we cannot accept commercially unreasonable or prejudicial terms,” the spokeswoman said.
“We are confident agreement in principle with QSL can be achieved quickly, without need for legislative intervention, if both parties are open to adopting a reasonable commercial approach.”
QSL said feedback from Wilmar growers on the issues in dispute meant it was not able to agree to Wilmar’s current position.
”QSL has already made substantial concessions to Wilmar – concessions not sought by or given to any other mill – that have required us to spend considerable capital and resources,” a spokeswoman said.
Mr Joyce said when he spoke to Wilmar and QSL last year before Christmas, he warned them government would intervene if no solution was found before the start of this year.
“When I spoke to them, I told them ‘if you want the clumsy fingers of government in your affairs, let me come back to work and not have this resolved’,” he said.
However Senator Matt Canavan said finding a viable solution was up to QSL and Wilmar, and government could only assist to a degree.
“We’re not magicians, we don’t have magic wands,” he said.
