1 CANEGROWERS Burdekin Ltd Newsletter Edition 2018/15 Distributed: Friday 31 August 2018 Burdekin Shire Council Rates Action Update The districts grower collectives had a constructive meeting with the Shire Mayor and CEO on Tuesday. The Mayor and CEO presented the Council ’s recently adopted financial hardship policy and the associated application for rates relief that is available to all rate payers. Notably is that there is a 50% rebate available on the Council ’s compound interest rate of 11% component for any payment plan that is approved and complied with. The policy and application can be accessed by clicking here. It was agreed by the grower collectives to lodge a submission to Burdekin Shire Councilors requesting the following be considered at their next scheduled meeting to be held on Tuesday 11th September: Extension of payment due date Allowing repayment of 2018/2019 rates over remaining period of council ’s financial year No interest applicable to extension/repayment program A district growers meeting is being convened by district grower collectives which will be held at 11am on Saturday 1st September at the Burdekin Diorama Home Hill (adjacent to the Burdekin River Bridge). The meeting will be to update growers and discuss any further action. Date change Sugar Code public consultation The Burdekin public consultation session on the Sugar Code if Conduct has been changed to: Thursday 6 September 9.30-10.30am at the Burdekin Theatre. Growers are encouraged to attend and to register with the Dept of Agriculture. Registration can be via an email to [email protected]or via phone 02 6272 2285. Registration is to meet workplace health and safety regulations; the information will be used to calculate final attendance numbers only. Arson attacks on cane paddocks There has been several arson attacks in the past two months in the Inkerman cane supply area. The attacks have been reported to police and investigations are ongoing. Growers are encouraged to be vigilant and report any suspicious activity to the police.
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Burdekin Shire Council Rates Action Update · 2018. 8. 31. · 1 CANEGROWERS Burdekin Ltd Newsletter Edition 2018/15 Distributed: Friday 31 August 2018 Burdekin Shire Council Rates
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Enough talk on electricity, governments must walk the walk and guarantee lower prices In light of the disappointing Federal Government decision on the National Energy Guarantee, consumer and end-user groups (the
‘Group’) representing regional and urban communities have joined together to hold state and federal governments accountable on
achieving price reductions for reliable electricity across the nation.
The cost of electricity used to be a source of competitive advantage for Australian industries, now our electricity costs are amongst
the highest in the OECD. This is harming our international competitiveness and economy, providing poor outcomes for
consumers, and disproportionately and negatively impacting vulnerable consumers and communities. These conditions are
clearly unacceptable.
In June 2018, the Australian Competition and Consumer Commission (ACCC) released the Restoring electricity affordability &
Australia's competitive advantage report, providing 56 recommendations across the electricity supply chain that, if implemented,
will reduce electricity prices by at least 20-25% Australia wide by 2020-21. It is now up to state and federal governments to accept
and implement these recommendations.
The Group is seeking that all levels of government commit to:
implementing the ACCC recommendations that will achieve a minimum 20% average electricity price reduction within
the next four years;
establishing annual targets on achieving this price reduction target so the
public can hold government to account; and
ongoing consultation with industry and consumer groups
on the design and implementation of the ACCC
recommendations.
Over the past decade, there has been a myriad of government
reviews on the energy sector that has yielded very little tangible
outcomes, with electricity prices doubling for most consumers.
All levels of government will be held accountable by the Group
if ACCC recommendations are not implemented, and there is a
failure to achieve the very conservative target of a 20%
electricity price reduction within four years. There is no more
room for political manoeuvring or passing the buck.
Participating organisations include: Australian Council of Social
Service (ACOSS), Bundaberg Regional Irrigators Group,
Canegrowers, Consumer Action Law Centre, National Irrigators
Council, National Farmers’ Federation, NSW Farmers’
Association, Public Interest Advocacy Centre (PIAC),
Queensland Farmers’ Federation, St Vincent de Paul Society
(Victoria).
The ACCC has recommended that Queensland, NSW and
Tasmania take immediate steps to remedy the past over-
investment in networks through a voluntary write down in the
RAB. With surplus capacity in place and network plans for
further increases in the RAB, electricity tariffs represent a
substantial charge for services that are not being supplied and
will not be required in the next five-year regulatory period."
"It’s clear there is no need to augment the networks in the
foreseeable future to meet the needs of agriculture."
"CANEGROWERS is calling on the development of efficient
network tariffs that enable economic development across the
state, rather than tariffs that tax activity and reduce Australia’s
CANEGROWERS Queensland … taking up the fight on all issues affecting cane farmers
Executive Comment ✓ Ongoing work on Code of Conduct review and finalisation of submission to the Federal review.
✓ District Managers catch-up teleconference to discuss current and future operational issues.
✓ Trade meetings with Department of Foreign Affairs and Trade, and Commonwealth Department of Agriculture and Water and (then) Trade Minister Ciobo in Canberra to discuss the impact of Pakistan and India trade policies.
✓ Catch-up with marketing companies to discuss the CANEGROWERS approach to sugar marketing education services and next steps.
✓ Meeting with Sunwater management on impending QCA water pricing review.
✓ Organisational and annual staff management issues and strategy planning for 18/19 year.
Legal ✓ Advising district in relation to rights of lessors and lessee under expired farm lease and relationship with mill owner and
harvest grouping.
✓ Drafting of district joint venture agreement regarding possible solar power options.
✓ Advising in relation to CANEGROWERS submission for Sugar Code review.
✓ Reviewing documentation for CANEGROWERS marketing services.
✓ Reviewing and advising on latest Rural Water Use Efficiency agreements.
✓ Review and advice regarding wording in standard farm lease document, particularly relating to treatment of water allocation.
Sugar Code of Conduct ✓ Synergies report finalised and submitted.
✓ CANEGROWERS-ACFA joint submission shared with districts, before finalisation and lodgement.
✓ Quantitative modelling being finalised in time for targeted consultation session with the Code Review Team.
Trade ✓ Met Trade Minister Ciobo and senior DFAT officials in support of Australia further pursuing all avenues to have India reduce
its sugar subsidies.
✓ Briefing with DAWR officials in relation to non-tariff measures affecting sugar trade in Japan (pol), China (SPS) and Indonesia (import licences).
✓ The Indonesia Australia Comprehensive Economic Partnership Agreement (IA-CEPA) has been finalised ahead of planned formal signature next week.
Electricity ✓ Briefed the AER’s Consumer Challenge Panel in relation to CANEGROWERS concern over the Energy Queensland’s
network tariffs for Ergon and Energex and Energy Queensland’s lack of response to these concerns.
✓ Provided input to the AER’s Consumer Reference Group responding to the draft RoR guideline.
✓ Met senior officials from the Australian Energy Regulator (AER) to discuss CANEGROWERS concerns about Energy Queensland’s approach to network pricing for its Ergon and Energex networks. AER shared our view that it is better to have CANEGROWERS’ concerns addressed in the early stages of EQ developing its regulatory proposal and TSS for 2020-25 rather than later in the process and undertook to informally raise the issues and concerns with EQ.
✓ Provided input to the development of the response to the AER’s draft Rate of Return Guideline being prepared by the AER Rate of Return Consumer Reference Group.
✓ Participated in an Agricultural Energy Taskforce meeting.
Water ✓ Commenced a dialogue with SunWater in relation to the Qld government’s expected referral of irrigation water pricing to
QCA.
Workplace Health and Safety (WHS) ✓ CANEGROWERS attended the Office of Industrial Relations (OIR) - Rural Industry sector standing committee meeting. The
main issues were:
There is a definite swing towards WHS compliance. Notices are being issued to rural businesses and then advice. The horticultural industry has been targeted to date.
The WHS Queensland Codes of Practice have been reinstated as part of regulations. From 1 July 2018 duty holders are required to comply either with an approved code of practice under the WHS Act or follow another method such as a technical or industry standard if it provides an equivalent or higher standard of work health and safety to the standard required in the code. OIR has been requested to ensure that this is well communicated.
Cane Fires ✓ CANEGROWERS have followed up with Queensland Fire and Emergency Service to start discussions on issues relating to
the Commissioners Notice. This is work in progress and Districts offices will be engaged once relevant reform structure is in place.
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CANEGROWERS Queensland … taking up the fight on all issues affecting cane farmers
Biofutures ✓ A follow-up meeting was held with Lazuli Professional Services who have a project funded by SRA to determine what the
industry believe are the most appropriate investment options in research to address alternate income from sugar cane. This was mostly around how they engage with the growing sector of the sugar industry.
✓ CANEGROWERS attended a Queensland Biofutures Biochar workshop. The Deputy Director - Governor’s Office of Planning and Research from California addressed the workshop on progress and options for biochar in California.
Reef Regulations ✓ Met with the Department of Environment and Science to discuss the proposed reef regulations and the current status of
nutrient management plans and sediment practice regulation.
✓ DES is still working to a December 2018 timeframe.
✓ QCGO has scheduled a follow up meeting in the coming weeks and will continue to engage with DES on this issue.
✓ Met with Department of Environment and Science to discuss the reef regulations and the recognition framework for BMP programs that allow growers accredited in BMP to not be targeted by regulations as they comply with the law.
OGBR Data Project ✓ OGBR has started a project to understand what data is available on fertiliser, cane yield and application. OGBR consider
there is greater scope to get data to support nitrogen use efficiency, DIN targets and practice change.
✓ The project was put to tender and won by Agtrix, the business who created Agdat.
✓ QCGO met with Agtrix last week to understand the project objectives and outcomes.
✓ OGBR has contacted districts about the project via email.
Smartcane BMP ✓ New marketing and communication materials have been distributed to BMP facilitators, including fact sheets, posters,
banners templates and videos. A four-page spread in the new edition of the Australian Canegrower magazine launches the next phase of BMP delivery.
✓ Participated in a discussion on the Rules of Thumb project being undertaken by DAF, which is looking for consistency on key messages for improved practices in each of the farming industries operating in the reef catchments. Efforts by this project to date have created a list of practice improvements for grazing, sugarcane and bananas, all of which were already well described in the respective industry BMP programs. Feedback from the SmartCane BMP team has focussed on avoiding further duplication of effort, and on looking for opportunities to add value. This will require much better consultation and planning than has occurred to date.
✓ Participated in a workshop, convened by the Office of the Great Barrier Reef (OGBR), on indicators of farmers’ attitudes and behaviours with respect to innovation and stewardship. Participants were in broad agreement that the benefits from OGBR measuring such indicators was not clear. Further, there was a general lack of confidence in the methodology put forward for collecting and interpreting data on these indicators.
✓ Work continues on preparation of the technical report for the Phase 2 project that supported BMP delivery from 2015-2018, including analysis of practice data for each district, and collation of influence on practice improvement from facilitator reports.
Reef Alliance Project ✓ Attended the Reef Alliance Project (RAP) Management Committee meeting in Townsville.
✓ The meeting discussed the project reporting and progress, communications including the Reef Awards scheduled for Wednesday 21 November 2018 in Yeppoon, the RAP database and options to continue the RAP through a Reef Alliance Project phase 2 program to be potentially funded through Reef Trust or Great Barrier Reef Foundation.
Reef Extension Program Graduate Dinner ✓ Attended the Reef Extension Program Graduate Dinner in Townsville which celebrated the work of six graduates who were
placed with host organisations in cane, grazing and forestry. The program was part of a QFF-led Rural Jobs and Skills Alliance program. Each of the graduates spoke of their experiences and what they had learnt in the program.
✓ Matt Kealley was MC for the night and the key note speaker was Lawrence Di Bella from the Herbert Cane Productivity Board.
Biosecurity ✓ Attended the Biosecurity Taskforce meeting at QFF with DAF and Biosecurity Queensland. Discussion focused on the BQ
biosecurity strategy and progress towards its implementation by the government.
Index Based Insurance ✓ CANEGROWERS was briefed on the progress of the QFF project investigating index based insurance.
✓ The case studies for the cyclone index based options have been completed and a similar product for specified dry periods is being developed.
✓ The next steps are to test if there is any commercial interest and start discussions with the Queensland Government to see if there is an option to use the concept to offset risk in disaster relief.
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Pricing information
Growers can monitor QSL pool performance via the Price Pool Matrices
published on the QSL website (www.qsl.com.au). This information is updated
regularly and provides a sense of how the QSL-managed pools are performing
over the current season.
Crop Year Indicative Price Movement
2018 Season 327.87 6.66
2019 Season 360.17 5.63
2020 Season 380.21 4.26
2021 Season 387.39 3.42
Calculation using ICE Closing Prices or equivalent Bank Swap Rates and
prevailing AUD/USD exchange rates
Refer to https://www.wilmarsugarmills.com.au for additional Pricing
Information and trends
Net pool price
($/Tonne IPS)
QSL Harvest Pool $341
QSL Actively Managed Pool $335
QSL Early Start Actively Managed Pool $340
QSL Guaranteed Floor Pool $333
QSL US Quota Pool $547
QSL 2-season Forward Pool $378
Advance Rates are based on a grower's individual estimated final sugar price.
For more information growers can access Wilmar's monthly Pool Reports,
Allocation Account Amount Reports, their applicable Advance Finance Charge
via the reporting page of the Pricing and Payments
section of the GrowerWeb. The cashflow forecast tool is also available in the
Pricing & Payments section.
Default Default Advances Default Pricing
Indicative price
Jun -17 65% 246.26
19 Jul 18 65% 246.26
16 Aug 18 65% 225.42
20 Sep 18 65% 225.42
18 Oct 18 70% 242.76
15 Nov 18 70% 242.76
20 Dec 18 75% 260.10
17 Jan 19 80% 277.44
21 Feb 19 85% 294.78
21 Mar 19 87.5% 303.45
18 Apr 19 90% 312.12
16 May 19 95% 329.46
20 Jun 19 97.5% 338.13
Jul -19 100% 346.80
Wilmar Indicative Future Sugar Prices
as at 31 August 2018
2018 Season Advances Schedule
As at 10 August 2018
QSL Indicative ICE 11 prices
The figures quoted above are indicative of available ICE 11 prices as at the current date
and reflect the weighted average AUD/mt price. The prices have been adjusted to include
Over-the-Counter (OTC) margin fees charged by banking institutions and, therefore, may
differ from daily prices quoted by the ICE #11 Exchange and/or other Marketers of Growers’
Economic Interest in Sugar (GEI Sugar). Values also do not account for any adjustments
resulting from local grower-miller pricing arrangements. For more information, view the
latest QSL Market Snapshot here.
Estimated QSL 2018 Pool Prices
As at 10 August 2018
2018 Season Advances
Schedule
As at 31 July2018
Applicable from Default Pools %
Rate
Default Pricing
Indicative price
Initial 60% 217.95
23 Aug 18 65% 224.97
18 Oct 18 70% 241.28
22 Nov 18 72.5% 249.90
13 Dec 18 75% 258.52
24 Jan 19 80% 275.75
21 Feb 19 82.5% 284.37
21 Mar 19 87.5% 301.60
18 Apr 19 90% 310.22
16 May 19 92.5% 318.84
20 Jun 19 95% 327.45
July 19 100% 344.69
Percentage rate approved by QSL Board
The program above is indicative only in its entirety and should not be taken as a commitment
by QSL with regard to either the advance rate or date of increase. The program may change
during the season depending on movements in the marketing and shipping plans, sugar price
and currency movements and timing of cash flows. Suppliers’ positions in relation to any
pricing elections may also impact the timing and size of advance payments.
Confirmed
Net pool price
($/Tonne IPS)
Wilmar Production Risk Pool $341
Wilmar Managed Pool $337
Wilmar US Quota Pool $644
Estimated Wilmar 2018 Pool Prices
As at 31 July 2018
Gross Pool Prices are an estimate based on the tonnes hedged and current market price (as at
the last business day of the month) for unhedged tonnage. Allocation Account Amounts begin
the season as estimates and are reviewed and updated on a monthly basis as actual
premiums and costs are known.
For the 2018 Season Production Risk Pool we forecast that the quantity of sugar in the Pool
exceeds the downside risk to the crop (i.e. at the commencement of the Season, the Pool is
greater than 30% of total estimated PPA sugar). Accordingly the Pool Manager has
commenced pricing that portion of the Pool that exceeds this downside risk to the crop.
The monthly pool price report is available on the Wilmar grower web
1. Solar energy can play a role in driving on-farm energy and water productivity but farmers face challenges in installing solar generation assets on farm and feeding excess energy back into the grid. QFF’s QCL column HERE.
2. QFF, its industry member Cotton Australia and the New South Wales Irrigators’ Council are encouraging farmers to share their experiences around securing affordable electricity. Have your say by completing the online survey HERE.
3. A new website had been created to publish the Australian Government's strategy and guidelines to assess, manage, monitor and improve water quality in Australian waterways. Check it out HERE.
4. The ATO has developed a tailored toolkit for small businesses to help them get it right this tax time, with information about keeping good records, small business tax concessions and business expenses. Download your tailored toolkit HERE.
5. It is important that we continue to recognise the positive commitments and efforts farmers, extension officers and community members are making to improve land management practices for the future of the Great Barrier Reef. Read QFF’s QCL column HERE.
6. Last week in Townsville, more than 100 reef extension officers gathered at the Reef Extension Forum organised by the QFF-led Rural Jobs and Skills Alliance and the Reef Alliance to share knowledge, experiences, and improve their capacity to deliver extension in the reef catchments. For more information check out the WIN News and 7 News stories.
7. QFF's Ross Henry has been working with Willis Towers Watson and researchers from the University of Southern Queensland to develop insurance products for farmers to protect against the potential impacts of cyclones, including loss of yield, crop damage and recovery works. Check out the 9 News story for details.
8. Are you a farmer, extension officer, industry or community member thinking about applying for the Reef Champion Awards? Don’t take our word for it, let last year’s winners convince you! Watch the video HERE and apply now HERE.
9. The Queensland Government announced last week it will appoint two drought commissioners and inject $9 million into programs to deal with the impacts of drought. Details HERE. While the Federal Government will increase its drought assistance to $1.8 billion. More information HERE.
10. The future of farming is here! Local startup Iridium Dynamics have been selected by QUT's BlueBox Robotics Accelerator Program to develop a drone for Australian agriculture. Share your feedback to help guide the team HERE.
Smartcane BMP self-assessment workshops BMP self-assessment workshops will be held fortnightly on
Monday mornings (9 –11 am) with the next meeting scheduled
September 10.
The self-assessment is the first step towards BMP
accreditation. Growers who have completed the self-
assessment and would like to continue on to accreditation