While work to introduce Marketing Choice arrangements for Mackay growers continues, the QSL team is finalising preparations to ensure the transition to the new process is as smooth as possible. The introduction of Marketing Choice in Mackay will mean that in order to use QSL, Mackay growers will need to nominate us as a marketer of their Grower’s Economic Interest in Sugar (GEI Sugar). GEI Sugar is your share of the sugar produced from your cane crop that you have traditionally received payment for, and for Mackay growers includes both their export and domestic sugar tonnages.
Submitting this choice and getting started in the QSL system will involve three key steps:
STEP 1. Nominate QSL as a marketer
In order to access QSL products and services once Marketing Choice is in place, Mackay growers will need to formally nominate QSL as a marketer of their GEI Sugar on the form that will be provided. This form will also capture the percentage of GEI Sugar the grower wishes to allocate to their preferred marketer/s each season, up to three seasons in advance.
STEP 2. Sign a Grower Pricing Agreement (GPA) with QSL
Once you’ve nominated QSL as a marketer, we’ll be in touch to arrange your QSL Grower Pricing Agreement (GPA). This is your contract with QSL and outlines your new marketing arrangements with us. It also helps us set you up in the QSL system so that you can start to deal directly with us for pricing and payment services.
STEP 3. Start using your QSL Direct account
Once your GPA has been processed, you’ll be issued with your new QSL Direct account. This is the online account that gives you 24/7 access to QSL and key activities including lodging your QSL pricing and payment preferences, placing or editing pricing orders, monitoring your sugar deliveries, receiving information regarding your QSL payments and accessing a range of reports.
Your local QSL team will make sure you’re comfortable with operating your account before you have to use it to finalise your pricing and payment preferences in April each year.
INFORMATION AND SUPPORT
Further details regarding the Marketing Choice process for Mackay growers will be released as soon as the arrangements are finalised. In the interim, you can find more information about QSL Marketing Choice, including our pricing and payment options, through the following resources:
• QSL Mackay office: Level 2, Mackay Canegrowers Building, 120 Wood Street, Mackay. Phone 4967 4618.
• Mackay Grower Relationship Officer Sonia Ball: 0418 978 120 / Sonia.Ball@qsl.com.au
• Website: www.qsl.com.au
Common Marketing Choice terms and what they mean
GROWER’S ECONOMIC INTEREST IN SUGAR, also known as GEI SUGAR: The sugar that the grower is paid for. This is traditionally about two-thirds of the sugar that’s produced from their cane. The other third is generally retained by the miller and becomes Miller’s Economic Interest in sugar (MEI Sugar). So the Grower’s share is GEI Sugar, and the Miller’s share along with any other sugar they produce from their own mill farms is MEI Sugar.
PRICING: The act of securing a base price for sugar, usually by using the ICE 11 raw sugar market. QSL uses this global commodity market based in the US to price sugar on behalf of our growers and millers for up to three seasons in advance.
MARKETING: The act of selling the physical sugar to a buyer, usually a refinery. It involves negotiating the valuable premiums that are paid above and beyond the base sugar price set on the ICE 11 market, and coordinating shipping arrangements, etc. Marketing and pricing are intertwined, as the ICE 11 contract used to price the sugar must correlate with the shipping period for the sale of the physical sugar.
OSA (On-Supply Agreement): A contract between a miller and a marketer (i.e. Mackay Sugar and QSL) that details how the miller will pass on any GEI Sugar to QSL as instructed by their growers. Mackay Sugar must have an OSA in place with QSL before its growers can exercise their right to Marketing Choice.
GEI SUGAR MARKETER NOMINATION FORM: The form Mackay growers will use to nominate QSL as a marketer and allocate a percentage of their GEI Sugar for marketing and pricing services up to three seasons in advance.
GROWER PRICING AGREEMENT: The contract that a Mackay grower will sign with QSL in order to access our marketing and pricing services. This will be issued to the growers by QSL after the grower’s GEI Sugar Marketer nomination has been processed.
QSL DIRECT: This is the online portal that Mackay growers will use to lodge their pricing and payment choices each season, conduct self-managed pricing, monitor sugar delivers and Advance payments, receive payment statements and run reports. QSL Growers receive access to their QSL Direct account once their QSL GPA is in place.