Wilmar taken to task

WE have now taken the next step in the battle for grower choice in relation to the marketing of their sugar.The Liberal National Government will set up a taskforce to oversee the introduction of a Code of Conduct for the sugar industry, and today I have accepted Minister for Agriculture Barnaby Joyce's request to chair the taskforce.This follows my call for this action at a meeting of government MPs and senators last week.I updated colleagues on the ongoing Wilmar/QSL marketing issue and explained that cane growers will be robbed of their marketing rights if nothing is done to address the situation.[box style="1 or 2"]

The background

Wilmar earlier this year announced it planned to take over the sugar marketing role from QSL for sugar produced in its mills.This move created a backlash from growers who want choice about who will market what is traditionally seen as their economic interest in the sugar.Wilmar refused to listen to any conversation about what anyone else would like to do and it has been a case of their way or the highway.That refusal to discuss, let alone negotiate, has only reinforced the need for action around the mill and grower negotiation process....[/box]

Someone needs to stand up for the growers and the Sugar Taskforce is expected to do that by creating a Code of Conduct and ensuring growers have a real say in how their sugar is marketed. 

This taskforce proposal was well received by the Liberal National Government and I am confident it will produce better outcomes for the sugar industry as a whole.The taskforce will be made up of Liberal National members of parliament who represent sugar growing areas and senators who have a keen interest in the best outcomes for the industry.It will report to the responsible minister, Small Business Minister Bruce Billson, as well as Agriculture Minister Barnaby Joyce.The Code of Conduct would need to be included as an amendment to the Consumer and Competition Act.The taskforce will consult with the industry and key stakeholders on the negotiation process, arbitration, and protections to determine if a Code of Conduct should be mandatory for the industry.By giving growers the ability to choose their marketing entity and making marketing activities fully transparent, growers will be able to make an informed decision about what is a critical part of their business.[box style="1 or 2"]

Terms of Reference

The Sugar Marketing Code of Conduct Taskforce is formed in response to grower concerns regarding changes to sugar marketing arrangements in Australia and is to report to the Minister for Agriculture by May, 2015.The Taskforce is to:

• Determine if a code of conduct for the sugar marketing process is needed;
• Determine if such a code should be mandatory;
• Consult with the sugar industry; and
• Consider provisions in such a code of conduct to address issues including, but not limited to, the following:

1. Negotiation process;
2. Grower economic interest sugar;
3. Ability to choose a marketing entity;
4. Transparency of marketing activities;
5. Protections from discrimination;
6. Arbitration where agreement cannot be reached;
7. State and Commonwealth Acts relating to the sugar industry and competition;
8. Codes of conduct in other industries; and
9. Any related matters.

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