Author: Kalagro

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Dear Kalamia Members,

Please find below a message from Greg Beashel, CEO of QSL.

Dear Grower,

You may have seen a statement from Wilmar this afternoon regarding our current negotiations with them for the implementation of Marketing Choice.

The negotiation process is always an arm wrestle – as I’m sure you have probably experienced yourself as a result of Cane Supply Agreement (CSA) negotiations. In fact, many growers may dismiss Wilmar’s communication today as just another attempt to pressure them into signing CSAs.

Our message to you regarding this matter is simple:

· The current On-Supply Agreement (OSA) terms put forward by Wilmar are, in our view, commercially unreasonable and force unnecessary costs and risk onto growers who choose to access QSL’s services under Marketing Choice.

· We have a constitutional requirement to act in the best interests of the industry we serve, and as such, we believe Wilmar’s current offer is unacceptable.

· We have been restricted from detailing the full extent of our concerns regarding Wilmar’s proposal due to the confidentiality restrictions associated with the current negotiations, and we reject their assertion that we have breached these. This is the first time we have heard this claim and we are surprised Wilmar has chosen to raise it in this way.

· QSL feels very strongly that Wilmar’s current OSA proposal is so unreasonable that it stymies the proper implementation of the Marketing Choice legislation.

· We believe Wilmar should be transparent and make the full details of their OSA proposal available to growers, so that those growers can make an informed assessment of the proposal’s implications on their Marketing Choice options.

· QSL’s Standard OSA Term Sheet was shared with industry back in May this year and is available on our website (kalagro.us3.list-manage.com/track/click?u=a1ba66844415ae49d91df94ac&id=618579a67d&e=cc4d914f5a) read more

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Dear Kalamia Members,

UPDATE on Agreements

This morning your Directors and BDCG met with the QSL Board in Townsville to gain a proper understanding of where QSL is in its negotiation of an On Supply Agreement with Wilmar, this being the critical agreement for QSL to be able to offer itself as a GEI Marketer.

They advised they are in continuing discussions with Wilmar, but are not prepared to accept some of the terms Wilmar are proposing. They are considering options if there is no breakthrough in discussions in the near future. These may require some costs to growers to be set against the additional revenue QSL may achieve for growers through their marketing and selling expertise.

Your Directors pressed the need for QSL to make its position very clear very soon, not only so growers can make reasonable decisions about Forward Pricing with Wilmar or holding off in the hope of being able to price with QSL, but also so that BDCG can determine what to do in its next negotiations with Wilmar or in any call for arbitration.

It was agreed that the next few weeks will be very important for all involved in determining how and when Agreements will occur.

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Dear Kalamia Members,

REMINDER – Burning Times

No Burning is Permitted between 10am and 2 pm on any day.

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