CSAs signed with Wilmar
IN THE past week 40 new Proserpine growers have signed cane supply agreements with Wilmar Sugar, according to the milling giant.
These latest growers add to a total of about 200 growers whom together are contracted to supply two million tonnes of cane to Wilmar's four mills.
Manager of Canegrowers Proserpine Mike Porter said that left 1300 growers who were holding out for a Canegrowers-endorsed 2017 cane supply agreement.
Mr Porter said it was hard to say if the take-up of Wilmar contracts that hadn't been endorsed by the lobby group weakened the position of Canegrowers.
"If people are moving over to that, it would have implications for us... and how much leverage that gives us with QSL,” he said.
Those growers are comfortable for Wilmar Sugar to market their GEI sugar unlike many Burdekin growers whose grower collective BDCG two weeks ago sought to back Wilmar into a corner by serving notice under the Sugar Industry Amendment Act of 2015.
This opens the door to an expensive and drawn out battle over sugar marketing in the courts.
"We have all been warned by the Queensland Productivity Commission that arbitration under this legislation is likely to be very expensive and a lengthy process that could cost each party up to $1.5 million and take 12-18 months to conclude,” Wilmar's John Pratt said.
After an agreement between MSF Sugar and QSL was reached two weeks ago Mr Porter was hopeful that a positive precedent in relation to offering grower choice had been made.
But Wilmar continues to argue that the 2015 bill is a "flawed piece of legislation that has done all damage and no good for the industry”.
Mr Porter, when asked if Proserpine Canegrowers would follow the lead of the BDGC said:
"We have investigated arbitration and it probably doesn't look like it's an appropriate response.”