Category: KCGO News

The latest news from Kalamia Cane Growers and Kalagro for Members Only.

MEMBER NOTICE – CSA UPDATE

Kalagro

CSA Update

 Dear members,

 As you are aware from emails from John Pratt and Greg Beashel, resolution of an On Sale Agreement (OSA) between them has stalled.

 KCGO through BDCG is continuing in its efforts to seek agreement with Wilmar on a Cane Supply Agreement (CSA). You have seen the letter from our solicitor advising that BDCGs version of agreements does satisfy the requirements of the Real Choice in Marketing amendments to the Act and this rebuts Wilmar’s assertion that they did not.

 However the advice does not conclude the Wilmar documents do not satisfy those requirements, so we do not have straightforward path to achieve our preferred outcome.

 Whilst BDCG’s version of agreements provides cover for QSL in so far as setting the key terms QSL says it needs in an OSA in order to be able to offer GEI Marketing Services, Wilmar’s version specifically isolates the OSA from the CSA.

 We are hoping to meet with Wilmar a few days after BDCG has presented its edited version of the Wilmar agreements back to them. That will hopefully occur as soon as we clarify a couple of matters with our solicitor.

 So that leaves BDCG with 2 paths to go down, one of negotiating with a possible follow on of arbitration and legal actions, and the other to take protective action against any political push to repeal the Real Choice in Marketing legislation by conducting a media and public relations campaign to bolster support for BDCG’s position and the legislation amongst politicians.

 KCGO has already invested significant sums with BDCG to get to where we are with our legal understanding and agreements, and will do so again to enable both the negotiation and the media and PR to progress to the next stage, but the Directors advise that if the next negotiation with Wilmar is not successful and the only path forward requires further KCGO to support BDCG further then a general levy will have to be struck to fund the legal and media costs in the manner Invicta (ICGO) has already done with its members. read more

MEMBERS NOTICE – BDCG approach to agreements with Wilmar

Kalagro

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Dear Kalamia Members,

Please click on link below to view BDCG’s approach to Agreements with Wilmar.

” BDCG solicitor’s letter regarding the

BDCG approach to Agreements with Wilmar”

kalagro.us3.list-manage.com/track/click?u=a1ba66844415ae49d91df94ac&id=9fe4642c9e&e=cc4d914f5a

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Member Notice – A Message to Growers – Wilmar Proposal

Kalagro

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Dear Kalamia Members,
Please find below a message from Greg Beashel QSL CEO regarding Wilmar’s proposal.

A message to Growers – Wilmar proposal

Dear Grower,

In response to Wilmar’s communication today to growers regarding the current OSA negotiations with Wilmar, we whole-heartedly agree that it is unusual to hold negotiations via the media. That is why we were surprised that Wilmar decided to do just that last Friday without informing QSL of its apparent intention to cease negotiations. Once that had occurred, QSL considered it was important to clarify the misinformation published by Wilmar and will continue to do so given what is at stake for the Queensland sugar industry.

While QSL welcomes Wilmar’s partial disclosure today regarding their current OSA proposal, there are other unreasonable terms contained within Wilmar’s current proposal which they continue to not disclose to their growers. Unfortunately Wilmar has still not advised us directly that negotiations have ceased, nor have we called for negotiations to end, and so QSL continues to regard itself as bound by confidentiality not to disclose the full terms of what Wilmar proposed. But Wilmar has made much in its recent communications about their concession to provide a Free-In-Store (FIS) proposal to QSL, so QSL believes we should provide some context to this key issue.

Unlike standard FIS title arrangements, Wilmar’s quasi-FIS terms would have QSL pay in full and accept title for the growers’ economic interest in sugar (GEI Sugar) when it arrived at the terminal, but Wilmar would retain the control of that sugar until it was exported. In short, while QSL would own the growers’ GEI Sugar it would have no control over that sugar’s management while it is in that terminal. It’s like buying a car but being told by the salesman when and where you can drive it. We reject Wilmar’s contention that controlling sugar owned by QSL is necessary because QSL is the operator of the terminals – we have a long and successful track record of serving multiple marketers. read more