PEAK farm body CANEGROWERS says it is surprised that legislation it says has opened sugar marketing services up to increased competition is continuing to be described as re-regulation by the Queensland government.
Amendments to the Sugar Industry Act, passed by a majority of the MPs in the Queensland Parliament a year ago, were a response to farmer anger at being forced into mill-owned sugar marketing monopolies from the 2017 season.
CANEGROWERS chief executive officer Dan Galligan said the legislation was pro-competition.
“It ensures growers will have a choice when determining the marketing path for the sugar in which they have a clear and recognised economic interest,” Mr Galligan said.
“The Agriculture Minister Bill Byrne is being misleading by referring to it as a ‘sugar marketing act’ – the legislation that was passed was the Sugar Industry (Real Choice in Marketing) Act 2015.”
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“The Act does not provide for either the actual or potential introduction of new statutory marketing arrangements for the sugar industry nor does it re-regulate the international marketing of Australian sugar,” Mr Galligan said.
“By formally recognising that growers have historically had an economic interest in the raw sugar produced from their cane, accepting the risks and rewards of the market along with millers, the Act actually completes the deregulation process by introducing contestability to the provision of marketing services.
“Without competition, businesses can become lazy or exploitative. Competition will make all sugar marketing service providers strive to continually improve their performance, lift productivity and lower costs.”
Negotiations around new Cane Supply Agreements between growers and millers for the 2017 season which provide for choice in marketing have been completed in many sugarcane districts and are continuing in a number of others, he said.
“Some companies have moved more quickly and adapted better than others,” Mr Galligan said. “MSF Sugar has finalised all of the agreements it needs to operate under the revised Sugar Industry Act.
“We understand that solid progress has been made by Tully Sugar and that Wilmar is continuing to negotiate both with grower groups and QSL.
“We stand by our conviction that a competitive market will ensure farmers can make pricing and marketing choices which give their businesses, and regional Queensland economies, the best opportunity to prosper.”
