Millers ‘dragging their heels’ growers say
IT HAS been nearly six months since the Real Choice in Marketing Bill passed in parliament.
But despite this, Wilmar is yet to draft a Cane Supply Agreement for 2017 and beyond.
"They're under no pressure to do anything," Canegrowers Proserpine deputy chairman Lindsay Altmann said.
"I know they have made a heap of noise about it being very complicated and all that, but surely they could have an interim agreement."
A Wilmar spokesperson said they were working on an agreement, but added the bill "presents complex commercial and legal challenges".
"We are working as quickly as possible to draft agreements that are robust enough to deal with all the scenarios possible under this legislation, while also managing our commercial risk appropriately," they said.
However, with the price of sugar currently sitting at a desirable figure for the 2017 crush, the lack of an agreement has left growers unable to lock in these prices.
"At the moment it's $515," Mr Altmann said.
"If I could price for that I'd probably take some."
Canegrowers Proserpine manager Michael Porter agreed growers were being left in the lurch.
"Effectively, by Wilmar dragging their heels, it's stopping the growers from accessing those prices," he said.
"The average sugar price has been below $400, so that means growers are missing out on a substantial boost to their income."
A Wilmar spokesperson said this was unfortunate, but was out of their hands.
"We understand the concerns of growers unable to forward price, but this is not a situation of our making," they said.
"We advised growers some weeks ago that our expected completion date for drafting was June 30, 2016."
Mr Porter said this was poor form and the miller was "dragging the whole process on".
"They could have had a first draft much earlier than this so we could have been working towards something," he said.
Mr Porter said they would be pressuring the milling giant to come to the table on or before June 2.
"Wilmar cancelled the Cane Supply Agreement over two years ago," he said. "We are working hard to try to get Wilmar to the table.
"Obviously this is dragging on far too long and any loss of income will be laid at the foot of the mill owner."