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FROM THE CHAIR
By Owen Menkens CANEGROWERS Chairman
It is hard to read this month’s magazine without noticing a theme. The breakdown in the commercial relationship between Queensland Sugar Limited (QSL) and Sugar Terminals Limited (STL) has been a significant industry issue since January, when STL announced it will terminate its contract with QSL to operate the sugar terminals.
Farmers funded two-thirds of the terminals’ construction costs, and they are an important pillar in our competitiveness in the export market.
QSL has operated the terminals efficiently and safely, so it is up to STL to show why this decision was made.
QSL is a not-for-profit organisation that runs the terminals on a cost recovery basis. STL needs to show its plans going forward, otherwise growers will remain sceptical of their motives.
CANEGROWERS has repeatedly called on these two companies to come together to resolve this issue. We have offered to mediate or pay for a professional mediator. Growers need to be assured that:
Terminals will operate efficiently and reliably.
There is a forward operating strategy and business plan in place.
Terminals will always prioritise sugar access.
Terminals will be operated as one, with no preferential pricing between areas.
None of the terminals will be sold.
Pricing arrangements will continue to be operated on an equitable basis with no monopoly behaviour.
The underlying issue at play here is the massive issue of share ownership and therefore control and influence of STL.
When the company was formed over 20 years ago, shares were distributed based on what was produced by growers and milled by millers.
Shares have changed hands over the years to the point where Wilmar has more than 50% of miller shareholding, which allows them to put two of their employees on the board.
There are many grower shares held by growers who have retired or no longer grow cane. These are considered dry holdings, as the shareholders are unable to vote. There are also many growers who hold shares but do not vote, therefore MSF, as the largest owner of G class shares, tends to decide the outcome of the G class vote.
QSL has countered this by purchasing many shares. So much so, that they now own more shares than MSF.
Of course, none of this corporate manoeuvring would matter if growers voted.
I ask all growers to make sure their vote is heard in the future. We need to have a say on how STL is run and controlled. Apathy is the biggest danger to our industry, so I call on everyone to make their voices heard in the upcoming STL AGM.
Changes at the top
As this month’s magazine went to print, National Farmers’ Federation (NFF) members had just voted in a new president.
David Jochinke, Victorian grain and livestock producer and the past Vice President of NFF, will take over the reins from Fiona Simson, who has led the organisation with integrity and distinction over the past seven years.
I’d like to thank Fiona for her dedication to the role and her commitment to improving outcomes for farmers and the agricultural community as a whole. She went about her work humbly, yet determinedly, ensuring farmers had a voice not only in the halls of power, but also in everyone’s front room.
She has been a tireless advocate and thoroughly deserves a break after so long in the top job.
I wish David all the best as the incoming president of Australia’s peak agriculture representative body. ■
