Sugar deadlock broken

Cane agreement almost done and dusted

A MASSIVE milestone has been reached in an ongoing saga between Queensland Sugar Limited and Wilmar Sugar, just three weeks out from the crushing season.

After two days of intense mediation, after years of back and forth, QSL and Wilmar reached an agreement regarding the GEI Sugar Sales Agreement late yesterday afternoon.

The pair are set to sign the agreement next week, although both parties are hailing the mediation a success, with growers now able to formalise their cane supply agreements.

It’s understood there are still a few hurdles to clear, but relieved cane growers can go into the crushing season with a weight off their shoulders.

Chairman of Canegrowers Herbert River, Michael Pisano, broke down the complicated issue and said that it was a great relief to be moving forward.

“To make all things happen for a grower we need three things in place – an agreement between the miller and the grower, an agreement between the grower and the marketer and another agreement between the marketer and the grower,” Mr Pisano said.

“Wilmar had come up with a change to how they had proposed to calculate the grower economic interest, a different method than what had been used for generations and the growers just flatly refused, because it would mean a change in the cashflow of the growers, from the start of the season on.

“We made it clear to Wilmar that we wouldn’t accept it and they took that on board … and it’s extremely pleasing for growers to hear a resolution has been made in a manner that appears to mean little difference to the growers cashflow. At this stage we have a couple of little hurdles to move through, but it’s been great news, it’s certainly a welcome relief to the growers that we’ve managed to remove all the obstacles now.”

Wilmar’s North Queensland Executive General Manager John Pratt said it had been a challenging period for all involved.

“This has been a challenging and frustrating chapter for all parties in our re- regulated industry,” Mr Pratt said.

“I want to acknowledge the valuable assistance provided by Mr ( Richard) Chesterman during mediation.

“His involvement was instrumental in facilitating the parties reaching an agreement.

“The Queensland Minister for Agriculture, Mr Bill Byrne, made Mr Chesterman available at a crucial time.

“It was a timely contribution by the State Government that reinforced the commercial process and produced an outcome acceptable to both parties.”