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New option gives growers more pricing power

Monday, 07 February 2022

Queensland cane growers will soon be able to price more of their own sugar than ever before, thanks to a new pricing option from the state’s industry-owned sugar marketer, Queensland Sugar Limited (QSL).

QSL’s new Harvest Pool Opt Out, available from 1 May, gives QSL Direct growers the option to take over pricing their Harvest Pool tonnage at any time during the season until 20 April in the year after the harvest, or until their Harvest Pool tonnage has been fully priced by QSL.

QSL General Manager Marketing Mark Hampson said the new opt out was a first for the Queensland sugar industry and a “game changer” for growers, not only maximising the tonnage they can price themselves, but unlocking new pricing flexibility for thousands of cane farming businesses.

“While QSL’s popular Self-Managed Harvest Contract lets growers price their Harvest Pool allocation themselves, it does have a minimum tonnage requirement and growers need to nominate it by 30 April before the crush starts each year,” Mr Hampson said.

“But from the 2022 Season, even the smallest QSL Direct grower will be able to opt out of the Harvest Pool and into the Self-Managed Harvest Contract at any stage during the season, taking over pricing for their Harvest Pool tonnage that QSL has not already priced.

“Being able to access additional tonnes to price once they’re comfortable with production levels, or if sugar prices jump up during the season, not only unlocks new pricing opportunities for growers but allows them to better tailor their pricing program to the unique needs of their business.”

Mr Hampson said the Harvest Pool Opt Out feature, including details of how much Harvest Pool tonnage the grower can price themselves and the value of any Harvest Pool tonnage already priced by QSL,  will be available to QSL Direct growers via their accounts from 1 May.

For more details click here or contact your local QSL team.