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Dear Kalamia Members,
Please find below a message from Greg Beashel, CEO of QSL.
You may have seen a statement from Wilmar this afternoon regarding our current negotiations with them for the implementation of Marketing Choice.
The negotiation process is always an arm wrestle – as I’m sure you have probably experienced yourself as a result of Cane Supply Agreement (CSA) negotiations. In fact, many growers may dismiss Wilmar’s communication today as just another attempt to pressure them into signing CSAs.
Our message to you regarding this matter is simple:
· The current On-Supply Agreement (OSA) terms put forward by Wilmar are, in our view, commercially unreasonable and force unnecessary costs and risk onto growers who choose to access QSL’s services under Marketing Choice.
· We have a constitutional requirement to act in the best interests of the industry we serve, and as such, we believe Wilmar’s current offer is unacceptable.
· We have been restricted from detailing the full extent of our concerns regarding Wilmar’s proposal due to the confidentiality restrictions associated with the current negotiations, and we reject their assertion that we have breached these. This is the first time we have heard this claim and we are surprised Wilmar has chosen to raise it in this way.
· QSL feels very strongly that Wilmar’s current OSA proposal is so unreasonable that it stymies the proper implementation of the Marketing Choice legislation.
· We believe Wilmar should be transparent and make the full details of their OSA proposal available to growers, so that those growers can make an informed assessment of the proposal’s implications on their Marketing Choice options.
· QSL’s Standard OSA Term Sheet was shared with industry back in May this year and is available on our website (kalagro.us3.list-manage.com/track/click?u=a1ba66844415ae49d91df94ac&id=618579a67d&e=cc4d914f5a)
I’d like to take this opportunity to thank the many growers who have continued to support QSL throughout this negotiation process. We appreciate that your decision to hold out for Marketing Choice comes with potential implications for your business. I assure you that we remain acutely aware of the need to progress this matter and are focused on negotiating a workable way forward.