Friday, 17 Feb, 2023 | News
MEDIA RELEASE
Industry unites to denounce terminal decision
Key sugar industry bodies have united to condemn Sugar Terminals Limited’s (STL) recent decision to terminate its long-standing Operating Agreement with Queensland Sugar Limited (QSL) and to call on the organisation to withdraw the Notice of Termination immediately.
After meeting in Townsville last week, Australian Cane Farmers Association (ACFA), CANEGROWERS, AgForce, Burdekin Cane and Agricultural Organisation, Kalamia Cane Growers Organisation (KCGO), Far Northern Milling and Bundaberg Sugar wrote to the STL Board to strongly denounce their decision and called the Board out for failing to consult with industry participants in the lead up to the termination.
Chair of CANEGROWERS Owen Menkens pointed out that STL had no experience in operating the terminals and the removal of QSL is a real risk to the Queensland sugar industry.
“QSL’s operation of Queensland’s bulk sugar terminals has always been cost-effective, reliable and safe which has allowed our industry to maintain a competitive advantage on the global market. STL have not yet shown industry how they can deliver on their claims of reducing operating costs and improving efficiency.”
ACFA Chair Don Murday said that STL are not acting in the best interests of the sugar industry and is frustrated in the way STL has conducted themselves.
“It is deplorable that STL would make such a significant decision, one which will have vast and long-term impacts on our industry, without taking the time to talk with growers first. It’s appalling behaviour.”
President of AgForce Cane Board, Russell Hall also expressed his disappointment that STL did not consult with grower groups prior to its announcement.
“Growers are STL’s majority shareholders, ultimately paying two thirds of STL’s costs, so why didn’t they reach out to us? It’s a slap in the face for growers and demonstrates real arrogance on STL’s behalf.”
Charles Quagliata, Chair of BCAO, expressed concerns over STL’s motivations for the decision.
“STL’s announcement means that the billion-dollar Queensland sugar industry will be at the mercy of a monopoly owner/operator, one that is focused on maximising shareholder returns rather than serving the industry.”
KCGO Chair Robert Malaponte said that QSL should continue to operate the terminals as they have done so for decades.
“QSL is industry owned and is the long-term and proven operator of the bulk sugar terminals. They have always provided a world-class service as terminal operator, experience that is unmatched.”
Far Northern Milling Chair Maryann Salvetti and CEO of Bundaberg Sugar Guy Basile were also firm in their view of who is best placed to operate the terminals.
“We stand strongly by our commitment to QSL and urge STL to put the best interests of the entire industry at the forefront and reinstate the Operating Agreement with QSL at once,” Ms Salvetti said.
“STL need to act as a matter of urgency before any damage is done to the sugar industry and its reputation,” Mr Basile concluded.
Under the terms of the existing Operating Agreement, QSL will continue to be the operator of the state’s bulk sugar terminals (BSTs) until 30 June 2026.
Media contact:
Owen Menkens | CANEGROWERS Chairman | 0409 480 179
Don Murday | ACFA Chairman | 0418 774 499
Panikos Spirou | Cane Services Manager AgForce | 0427 577 116
Christian Lago | Director BCAO | 0414 421 723
Allan Parker | Manager KCGO | 0438 827 550
Bronwyn Dwyer | CEO Far Northern Milling | 0428 891 462
Guy Basile | CEO Bundaberg Sugar | 0418 887 399
ENDS.
Tuesday, 19 Oct, 2021 | Markets & Trade, Sugar Industry
Queensland cane growers are reminded that they only have until 31 October to choose which sugar marketer they would like to use for next season.
Since the introduction of Marketing Choice in 2017, growers have been able to choose whether they wish to use their miller or their industry-owned marketer, Queensland Sugar Limited (QSL), for pricing, payment and marketing services.
QSL’s Marketing General Manager Mark Hampson said strong prices on the ICE 11 raw sugar market had already seen high levels of growers complete the marketing nomination process in order to access grower-managed pricing for next season, with 2023-Season prices now also drawing increasing interest.
“Growers appreciate that it’s been four years since we’ve seen raw sugar prices at these sorts of levels, and so they’ve been very busy making the most of it by undertaking forward pricing,” Mr Hampson said.
“We’ve seen QSL growers lock in record levels of pricing this year and next season is already heavily priced, with $560/tonne gross actual the highest 2022-Season Target Price order filled to date, and $575/tonne gross actual filled against the July 2022 contract in our Individual Futures Contract option.”
Mr Hampson said 2023-Season pricing had hit the $500/t gross actual mark late last month against the July 2023 contract, while the highest grower pricing achieved for the 2024 Season was currently $465/tonne gross actual against the July 2024 contract.
“After three consecutive seasons where the average market price was less than $390/tonne and then climbed to just $429/tonne last season, it’s fantastic to not only see strong prices but have them extend across multiple seasons, enabling growers to potentially lock in profitable prices for the crops to come,” he said.
QSL, a not-for-profit, has Australia’s largest range of sugar pricing options for cane growers, enabling growers to price as little as 10 tonnes on the international ICE 11 raw sugar market.
Tuesday, 19 Oct, 2021 | Bioenergy, Biofuels, Sugar Industry
World-leading technology has landed in Mackay, bringing Queensland one step closer to a $1 billion sustainable, export-oriented industrial biotechnology and bioproducts sector.
Mercurius has finalised commissioning and is about to commence operations at their pilot plant that will use their patented REACHTM technology to produce valuable renewable chemicals, diesel and jet fuel from sugarcane waste.
Premier Annastacia Palaszczuk said Mackay, which is in the heart of sugarcane country, was the perfect place for this trial to take place.
“I first met with Mercurius on a trade mission to the United States in 2017,” the Premier said.
“They were attracted to Queensland because of my government’s commitment to developing a biofuels industry here.
“This project signals the start of a new industry for the region which means local jobs and further strengthens Mackay’s credentials as a leading biorefinery location.
“The plant at the Queensland University of Technology’s Biocommodities Facility in Mackay will be fully operational over a three-month period.
“My government has helped get this project off the ground, providing support through the Jobs and Regional Growth fund.”
Member for Mackay Julieanne Gilbert said it’s an exciting time for the region with the project providing jobs for around 30 people.
“It’s great to see equipment finally here and being commissioned,” she said.
“I’m proud that Mackay is now going to be looked at on a world stage during this three-month trial.”
The technology converts a range of biomass feedstocks into:
highly price-competitive, renewable ‘drop-in’ fuels that can be tailored for use in jet and diesel engines (unlike biodiesel, the fuel requires no modification for retail sale)
renewable chemicals for bio-based industrial plastics such as bottles, textiles, food packaging, carpets, electronic materials and automotive applications.
The REACH™ process avoids the need for the use of pure sugars, high operating temperatures and high pressures, resulting in faster conversion rate and lower cost of production than current processes.
Deputy Premier and Minister for State Development Steven Miles said the project was only the beginning for Queensland’s biofutures sector.
“We will bring more high-value jobs to the regions and make more things in Queensland,” Mr Miles said.
“The industrial biotechnology and bioproducts sector will attract significant international investment and create regional, high-value and knowledge-intensive jobs in manufacturing.
“Regions like Mackay are perfectly placed to take advantage of the opportunities this industry presents.
“If the operations are successful Mercurius will also prepare studies for another demo facility to be based in regional Queensland which would scale up production leading to even more jobs.
“Supporting projects like this is part of the Queensland Government’s COVID-19 Economic Recovery Plan.”
Representatives from QUT will work alongside Mercurius to examine the technology and valuable by-products to enhance commercialisation opportunities in Queensland.
Mercurius CEO and Technology Development Director Karl Seck has been in Mackay assisting in site preparations for the pilot equipment installation and commissioning.
“Queensland was the best location for us to run this pilot plant and we hope to see success so we can move forward with plans for a larger demonstration plant,” Mr Seck said.
“The potential broader economic and environmental benefits derived from our REACHTM technology is significant for both the region and the low carbon intensity biofuel industry and we are excited to get started here in Queensland.”
Project leader from QUT’s Centre for Agriculture and Bioeconomy and Advance Queensland Research Fellow Dr Darryn Rackemann welcomed the progress on the project.
“This is transformative technology and to be part of the pilot process is fantastic”, Dr Rackemann said.
“QUT will be looking into the commercial opportunities from the REACHTM technology which could lead to producing renewable fuels and chemicals in Queensland creating new jobs and opportunities for regional communities.”
This project has been funded through the Jobs and Regional Growth fund and aligns with the Queensland Government’s Biofutures industry development roadmap and action plan to support and inspire Queensland businesses secure their share of the global bioproducts and services market.
