CANE farmers are today welcoming news that six of the seven sugar milling companies operating in Queensland have now finalised commercially acceptable agreements with CANEGROWERS members for the 2017 season.
CANEGROWERS chief executive officer Dan Galligan said an on-supply agreement (OSA) signed by QSL and Tully Sugar cleared the way for farmers in the Tully region to sign cane supply agreements which guaranteed they had marketing choice.
“Amendments passed by the Queensland parliament just over a year ago to the Sugar Industry Act are now a working reality for our members in all but the Wilmar Sugar milling districts,” Mr Galligan said.
“Instead of being forced into having their sugar marketed only via the mill, the amendments have facilitated a competitive marketing environment in which the milling companies and our growers can move forward.
“Our members, mostly family farmers, who contribute to the regional and state economy of Queensland need to be able to access the best marketing options for their sugar.”
CANEGROWERS congratulates the negotiating teams of CANEGROWERS Tully and Tully Sugar Limited, which is a wholly owned subsidiary of Chinese agribusiness company COFCO.
“While it has taken some time to work through the details and satisfy the requirements of the amended Act, the process has developed practical and mutually beneficial commercial arrangements between growers and the miller.
“Our Tully growers now have a clear pathway to capture the higher sugar prices now available as the global sugar market maintains a phase of a supply deficit.”
CANEGROWERS continues to urge Wilmar Sugar and QSL to expedite their OSA, currently under negotiation.
“With that in place, our members in the Herbert River, Burdekin, Proserpine and Plane Creek districts will be able to sign cane supply agreements.
“That will be the final piece of the puzzle to secure grower choice across the industry and we hope to have that full picture completed by Christmas.”
Mr Galligan said CANEGROWERS was seeking a meeting with Agriculture Minister Bill Byrne to outline to him how the amended Sugar Industry Act was working to the benefit and long term prosperity of the industry.
“It’s demonstrated by the fact that we are moving into the new production year which looks to record the ninth successive increase in the state's sugarcane production,” Mr Galligan said.
