You are here

Indicative Advances Program - 2017 Season

The current indicative ‘Advances Payments’ program for the Fixed Price Forward Contract Pool, Target Price Contract Pool, Guaranteed Floor Pool and all other pools for the 2017 season is reported below.  The program represents the average returns for all pools and pricing platforms for raw sugar supplied under the RSSA, On-Supply Agreements and Grower EI Sugar Supply Agreement. Suppliers will be paid a proportional amount of QSL’s then current estimate of the forecast final weighted average pool price the Supplier will receive for raw sugar supplied under these agreements, with some exceptions. The 2017 season will see the introduction of the Accelerated Advances Program for the Fixed Price Forward Contract Pool, Target Price Contract Pool and Guaranteed Floor Pool whereby participants in that pool will receive 90% of the pool value by December 2017 where so elected. Suppliers to the Fixed Price Forward Contract Pool and Target Price Contract Pool will have the option of selecting the accelerated advances program or remain with the standard advances program.

The QSL Board reviews the program periodically to determine whether increases to the program can be approved.  The initial advance rate of 60% for all pools was reviewed and approved by the Board at the April 2017 meeting. The February 2018 advance rate increase was reviewed and approved at the February Board meeting. The March 2018 advance rate increase was also approved at the February meeting. The next review will be at the March meeting where the April 2018 advance rate increase will be considered.

The program below is indicative only in its entirety and should not be taken as a commitment by QSL with regard to either the advance rate or date of increase. The program may change during the season depending on movements in the marketing and shipping plans, sugar price and currency movements and timing of cash flows. Suppliers’ positions in relation to any pricing elections may also impact the timing and size of advance payments.