The announcement made by Tully is now putting a lot of pressure on Wilmar to sign that agreement with QSL
The announcement made by Tully is now putting a lot of pressure on Wilmar to sign that agreement with QSL Peter Carruthers

Pressure from all sides mounts on Wilmar to make on-supply deal with QSL

PRESSURE is mounting on Wilmar Sugar to make a deal with Queensland Sugar Limited after Tully Sugar signed an on-supply agreement with the not-for-profit organisation last week.

A contract a year in the making, Tully Sugar general manager Barry Dun said it was "a great day for Tully".

Wilmar remains the only company to not have brokered a deal with QSL and ensure an on-supply agreement for growers not choosing Wilmar as their sugar marketer. 

Manager of Canegrowers Proserpine Mike Porter said stakeholders will be asking why can't Wilmar and QSL make a deal?

"QSL are basically saying 'the legislation is here. Its not that difficult to work with. We as a GEI marketer have signed up deals with a number of other mills. Wilmar is now the only one (to not offer on-supply agreements with QSL) what is Wilmar's problem'," he said.

"The announcement made by Tully is now putting a lot of pressure on Wilmar to sign that agreement with QSL."

"At the end of the day the basic terms and conditions of the CSA aren't going to change that much and those holding out are not going to get a better deal, they are going to get the deal that was promised to them by Wilmar from day one, and that is that they would have QSL as a choice."

Politicians are now weighing in on the argument while growers watch the sugar price fall.

Hinchinbrook MP, Andrew Cripps when attempting to score points for the LNP yesterday said after the Tully announcement the "Palaszczuk Government and Wilmar Sugar were now alone in their bitter struggle against the sugar marketing legislation".

Mr Cripps criticised Wilmar for not providing growers marketing choice promised by amendments to the Sugar Marketing Act passed under the former Newman-led LNP government last year.

On the flip-side Agriculture Minister Bill Byrne described the LNP legislation as "poorly crafted" and he called on the LNP to release the Productivity Commission report into the regulation of agriculture.

Minister Byrne said growers "are wading through increasingly thick molasses" and amendments to the Act "have added nothing but confusion and animosity to the mix."

Canegrowers CEO Dan Galligan yesterday said they were seeking a meeting with Mr Byrne to "outline how the amended Act is working to the benefit and long term prosperity of the industry".

"(This is) 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 sugar cane production," Mr Galligan said.


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