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Background

In mid-2014 Wilmar, MSF Sugar and Tully Sugar provided formal notice that they intended to withdraw from the QSL system at the end of their current Raw Sugar Supply Agreements in July 2017.

The move would have resulted in the majority of Queensland’s export sugar crop being diverted from QSL's not-for-profit system into the millers’ own marketing systems from July 2017 and sparked considerable industry debate about future marketing arrangements.

After a Federal Government Senate Inquiry and Taskforce into the matter, as well as State Government investigations, the Member for Dalrymple Shane Knuth presented a Private Members' Bill in the Queensland Parliament on 19 May 2015 for an act to amend the Sugar Industry Act 1999. The Sugar Industry (Real Choice in Marketing) Amendment Bill 2015 aimed to provide Queensland cane growers with the right to choose who sells and prices grower economic interest sugar, and permited arbitration if required.

After amendments from the LNP, the Bill was passed in the Queensland Parliament on 2 December 2015, with the Sugar Industry (Real Choice in Marketing) Amendment Act 2015 released on 17 December 2015.

QSL subsequently secured On-Supply Agreements (OSA) with MSF Sugar, Tully Sugar and Wilmar Sugar, enabling growers who supply these millers to access QSL Marketing Choice for the 2017 Season and beyond.