CANEGROWERS believes that a profitable, sustainable sugar industry depends upon profitable farming businesses. Growers’ ability to access good information and have good options to make decisions around marketing are a critical determinant of their profitability.
CANEGROWERS seeks to ensure there is a well-functioning market with unimpeded competition for sugar marketing services, in which each grower can access the best possible marketing services and pricing products for their business needs, via a direct relationship with marketers competing to offer the best possible marketing services to growers, and where the market provides for optimised revenue outcomes based on their individual requirements.
While CANEGROWERS supports growers to make the choice of marketer to best suit their individual needs, the need for viable competitive choices of marketer is a necessary requirement, as is ongoing access to high returning sugar markets and competitive costs for efficient storage and handling services which serve industry needs.
To ensure growers receive the best value from a well-functioning competitive market for GEI sugar marketing, CANEGROWERS expects as a minimum standard all providers of sugar marketing services to:
- Transparency
Clearly and openly make available all details, terms and conditions, including notice periods for withdrawal/changes, of all their sugar marketing products prior to growers signing up to market with them.
This is because growers must be able to make an informed choice of provider and product based on what is offered. In no case should a customer be expected to commit to a supplier before knowing exactly what the supplier is offering. - Performance
Clearly and openly make available and regularly update past and current in-season performance of any managed and shared/allocation pools (including premiums and cost components) prior to and after growers sign up to market with them.
This is because growers must be able to make an informed choice of provider and product based on the value the provider has delivered and costs incurred. - Forward risk management
Allow growers the opportunity to price sugar at least as far forward as their current Cane Supply Agreement extends.
This is because sugar marketing services must allow growers the chance to sell sugar they plan to grow. - Value
Pass back to growers the full net value obtained in the market for the sugar sold.
This is the service growers are paying for. - Prompt payment
Pay growers on time according to a clearly communicated schedule agreed with the grower in advance.
This is to ensure growers know what they will receive from their provider. - Education
Engage with CANEGROWERS to develop and communicate marketing education materials and performance information in a way intended to be easy for growers to understand.
This is to ensure growers can make informed decisions to effectively choose and use products.
CANEGROWERS expects providers to go above and beyond the minimum standard, as this will add value to themselves, growers and the industry. CANEGROWERS expects providers offering an industry standard best practice service to also:
- Support
Provide product support and regular, fit-for-purpose market intelligence supporting product and pricing decisions to all growers using the service through a variety of means, such as in writing, in person, online and via phone. - Accessibility
Allow growers to choose and execute pricing products through a variety of means, such as online and via phone. - Choice
Provide growers a range of products and payment schedules to choose from, where risk profiles permit, at a competitive price and with accessible tonnage limits, including managed and self-managed pricing options across a grower’s full production volume. - Cashflow planning
Assist growers with forecasting and anticipating cashflow based on their agreed payment schedule. - Pool transparency
Disclose in advance of grower nominations and regularly update on (at least quarterly) to participants in a consistent and comparable manner the pricing progress, strategy adopted and outstanding level of price risk for any pool product managed by the marketer, including the shared/allocation pool related to physical sugar management. - District strategy
Share with CANEGROWERS local district office aggregate information on pool choices, nominations and the pricing position of grower managed pricing, to engage on and review trends in grower choices and outstanding price risk in the district for current and future seasons.