“Dear Grower
The recently executed Collective Cane Supply Agreement contains a provision within Schedule 4 Clause 11 (pages 77/78) for an incentive payment to encourage growers to become accredited for Smartcane BMP as well as Bonsucro. Extract from CSA is reproduced below:
11 Smartcane BMP adoption and Bonsucro accreditation
(a) The Parties recognise the increasing expectations of customers and society generally in relation to environmental stewardship and social responsibility. The Parties also acknowledge the Smartcane Best Management Practice (BMP) program and Bonsucro accreditation as the appropriate pathway for demonstrating sound environmental stewardship and social responsibility across the raw sugar value chain.
(b) To encourage the rapid uptake of Smartcane BMP and Bonsucro accreditation, the Mill Owner will make available the following one-off incentive payments to the Grower:
(i) A payment of 15 cents per tonne, subject to paragraph 11(b)(ii) of this schedule 4, for all Cane Delivery Tonnes in the Relevant Season in which the Grower first achieves Smartcane BMP accreditation for all three of the core Smartcane BMP modules:
(A) Module 1 – Soil Health and Nutrition Management;
(B) Module 2 – Irrigation and Drainage Management; and
(C) Module 3 – Weed, Pest and Disease management.
(ii) Regardless of the number of cane supply agreements to which the Grower is a party, a cap of 25,000 tonnes of cane per legal entity (ABN/ACN) will apply to Grower payments pursuant to paragraph 11(b)(i) of this schedule 4. (For clarity, and by way of example, if the Grower is a party to two or more cane supply agreements under the same ABN number, the maximum aggregate total of tonnes from the applicable farms to which an incentive payment under this schedule 4 can be made is 25,000 tonnes. The same limit applies if the Grower holds only one cane supply agreement under a single ABN).
(iii) A payment of 10 cents per tonne for all Bonsucro accredited Cane Delivery Tonnes in the Relevant Season in which the Grower is first awarded Bonsucro accreditation after:
(A) completing Smartcane BMP Module 8 – Managing People and the Environment (Bonsucro bridging module) in addition to modules 1, 2 and 3 referred to in paragraph 11(b)(i) of this schedule 4; or
(B) completing Smartcane BMP Modules 4, 5, 6 and 7 and any other necessary requirements in addition to modules 1, 2 and 3 referred to in paragraph 11(b)(i) of this schedule 4; or
(C) satisfying the necessary Bonsucro requirements via a pathway that is independent of Smartcane BMP.
(iv) Incentive payments available pursuant to paragraph 11(b)(i) of this schedule 4 Smartcane BMP Modules 1 – 3 shall only be available for the 2017 and 2018 Relevant Seasons, whilst payments pursuant to paragraph 11(b)(iii) of this schedule 4 Bonsucro accreditation shall be available for the Initial Term of this Agreement (2017 to 2019 Relevant Seasons).
(v) Payments to the Grower will be made to the Grower after the conclusion of the relevant Crushing Season and within 30 Business Days following receipt of satisfactory documentary evidence of BMP or Bonsucro accreditation and the Mill Owner’s verification of the Cane Delivery Tonnes to which the Bonsucro accreditation relates.
We have also sought clarification from Wilmar in relation to growers that are already Smartcane BMP accredited and am pleased to advise that Wilmar will recognize previously completed modules in relation to the BMP payment. Please refer to 11 (b) (v) for procedure to claim.
Cheers.”
Les Elphinstone
Manager / Company Secretary
Kalamia Cane Growers Organisation Ltd
