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.

 In the meantime I can only advise that for any member who absolutely needs to Forward Price now there still is only one way available and that is by entering an Individual CSA and PPA with Wilmar. If members need to consider that option I am available to discuss the issues they may want to consider in making a decision.