Mandatory Sugar Code of Conduct delivers certainty for industry

19 December 2019

The Australian Government has appointed an independent arbitrator to resolve a supply contract deadlock between Tully Canegrowers and Tully Sugar Limited and return much-needed certainty to our sugar farmers.

This is a vital initiative that supports Australia’s $4 billion dollar sugar industry, its 4500 cane farmers and the communities they support.

This appointment is the first of its kind under the Mandatory Sugar Code of Conduct introduced by our government in 2017.

The arbitrator has been appointed due to Tully Canegrowers and Tully Sugar Limited failing to agree to terms of a cane supply contract for the 2020 season despite several months of negotiation.

Prior to the Mandatory Sugar Code of Conduct there was no mechanism to resolve a dispute of this kind. 

That has changed under our government. Treasurer Josh Frydenberg, and Minister for Agriculture, Bridget McKenzie, worked together on the appointment of a fair and independent arbitrator to resolve the deadlock.

It is understood that the arbitrator will contact the parties before Christmas and commence the formal arbitration process in January, which should then take 30 days.