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Mackay Sugar Growers - Marketing Choice with QSL

On 1 December 2017 QSL received notification from Queensland Commodity Services (QCS) that it will terminate its current Raw Sugar Supply Agreement (RSSA) with QSL from the end of the 2019 Season. As a result, growers supplying QCS’s parent company, Mackay Sugar Limited, will not be contracted to supply raw sugar to QSL for marketing purposes beyond 30 June 2020.

Under Queensland's Sugar Industry (Real Choice in Marketing) legislation and the Federal Sugar Code of Conduct, Mackay growers are entitled to access QSL for pricing and marketing services beyond this date. However, they cannot do so until Mackay Sugar Limited secures an On-Supply Agreement (OSA) with QSL.

QSL is very keen for growers supplying Mackay Sugar to be able to access QSL's pricing and payment products as soon as possible, and is currently in negotiations with Mackay Sugar to secure an OSA for the 2019 Season.

You can read an overview of the current state of play for Mackay Sugar Growers by clicking here.

WHAT YOU CAN DO NOW - REGISTER YOUR INTEREST

QSL appreciates your support in our efforts to secure an OSA with Mackay Sugar.

In the interim, you can learn more about the Marketing Choice process and your potential QSL pricing options by registering your interest and clicking here

Providing these simple details will help to ensure that you are kept up-to-date with Marketing Choice developments and QSL events in your area.

HOW IT WORKS ELSEWHERE

QSL already has OSAs in place with Wilmar, MSF Sugar and Tully Sugar, and growers supplying these millers have been able to choose QSL and access our pricing and marketing services since the 2017 Season.

While the pricing products in each milling district are largely the same, the way growers access these products differs as a result of the OSA in place with their Miller.

Wilmar Growers deal directly with QSL and are paid directly by QSL. Each participating grower has a Grower Pricing Agreement with QSL and uses the QSL Direct online grower portal to access their account details, nominate tonnes to QSL's managed pools, place, change or cancel forward pricing orders, monitor payments from QSL and access a range of reporting information specific to their farms. In addition to this online tool, these growers also have dedicated local Grower Services Team representatives available to provide face-to-face support and help. They can also access telephone support by calling the free QSL Direct Helpline.

Tully Sugar and MSF Sugar Growers access QSL through their Miller. Growers who choose to use QSL place their pool nominations and individual grower pricing orders with their Miller, who amalgamates these and passes the orders on to QSL. As is the case with the current Advances arrangements for Mackay Growers, QSL subsequently passes payments to growers back to the Miller, who is responsible for distributing them to individual growers.

QSL'S PRICING OPTIONS

Growers using QSL as their marketer for the 2018 Season have access to the following products. Please note that there are some minor variations in minimum tonnage requirements and pricing completion dates in some milling districts.

QSL-MANAGED PRODUCTS

These QSL-managed pools aggregate tonnage from one or more participants, with QSL making all pricing decisions for the pool. Growers' choices are: 

2018 QSL HARVEST POOL: A QSL-managed pool designed to manage a limited amount of production variation throughout a season. All Growers who nominate QSL as their GEI Sugar Marketer must allocate to this pool 35% of their expected Grower's Economic Interest in sugar (GEI Sugar) for which QSL is to be the marketer. There is no commitment to deliver, with Growers only paid for the final sugar delivered into this pool. If QSL Growers make no other pricing product allocation their GEI Sugar defaults into this pool.

2018 QSL EARLY-START ACTIVELY MANAGED POOL: A QSL-managed pool which targets the best return over the season by pricing more frequently as short-term market opportunities arise. This pool has an earlier nomination deadline and longer pricing window than the standard QSL Actively Managed Pool. The minimum tonnage required to participate in this pool is 10 metric tonnes.

2018 QSL ACTIVELY MANAGED POOL: A QSL-managed pool which targets the best return over the season by pricing more frequently as short-term market opportunities arise. The minimum tonnage required to participate in this pool is 10 metric tonnes.

2018 QSL GUARANTEED FLOOR POOL: A QSL-managed pool which provides a guaranteed minimum return with the potential for higher returns across the season. The minimum tonnage required to participate in this pool is 50 metric tonnes.

2019 2-SEASON ACTIVELY MANAGED POOL: A QSL-managed pool for the 2019 Season, with pricing undertaken in both the 2018 and 2019 Seasons. This pool aims to target the best return, with some pre-set price triggers. It has been designed for Growers who seek exposure across multiple seasons. 

SELF-MANAGED POOLS

QSL’s self-managed pricing products allow Growers to make their own pricing decisions for current and/or future seasons. Growers' choices are:

QSL TARGET PRICE POOL: Enables Growers to price their GEI Sugar during the current season and up to three seasons ahead. Orders must be in a minimum of 10 metric tonne lots, with targets in $5 increments (e.g. $415, $420, $425). The time available to price can be extended as far as 19 April in the year after crushing starts for the relevant season (costs may apply). Growers using this option can choose an Accelerated Advances program (up to 90% of the value of their completed pricing by the end of crushing) or the standard QSL Advances program once they have completed their pricing for the season.

QSL INDIVIDUAL FUTURES CONTRACT POOL: Enables Growers to price GEI Sugar incrementally during the current season and up to 3 seasons ahead. Allocations to this pool must be in a minimum or multiple of 60 metric tonnes. Individual pricing orders are in a minimum of 10 metric tonnes in $5 increments, with separate pricing decisions for each of the four individual futures positions available each season. Pricing is to be completed by 16 April in the year after crushing starts.

MORE INFORMATION

For further details contact your local QSL Grower Services Team representative Cathy Kelly on 0409 285 074 / Cathy.Kelly@qsl.com.au