A sugar marketing agreement between Mackay Sugar and QSL has been terminated.
A sugar marketing agreement between Mackay Sugar and QSL has been terminated. Peter Carruthers

Mackay Sugar calls it quits with QSL

MACKAY Sugar has terminated its Raw Sugar Supply Agreement with marketer Queensland Sugar Limited from the end of the 2019 season.

QSL released the news of the termination late Friday, but said in a statement that it was working on options to continue marketing Mackay Sugar's products.

Both Mackay Sugar and QSL indicated they were negotiating for a On-Supply Agreement beyond June 30, 2020 for growers to "continue to access QSL marketing services moving forward".

Since 2015, cane growers have had the option of marketing sugar through QSL or Wilmar; however, Mackay Sugar's Raw Sugar Supply Agreement meant that it, and its growers, were contracted to supply QSL with raw sugar for marketing.

With the agreement ending, growers will have choice in who markets their sugar.

But QSL is confident it will still market sugar from Mackay Sugar growers.

QSL chief executive officer Greg Beashel said that QSL welcomed the opportunity to work with Queensland Commodity Services and (its parent company) Mackay Sugar to deliver marketing choice to its growers.

"We've already successfully delivered marketing choice arrangements to Wilmar, MSF Sugar and Tully Sugar growers and we look forward to extending similar arrangements to Mackay Sugar's growers in the Mackay, Tablelands and Mossman milling districts," Mr Beashel said.



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