High Stakes: Let QSL Modernise

QSL needs a clear path forwards without competitors clouding the will of members who market their sugar with QSL.  Picture: Kirili Lamb

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By Joseph Borg, Chairman, CANEGROWERS Mackay

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Queensland Sugar Limited (QSL) is our own industry-owned not for profit sugar marketing and logistics organisation which has been in existence for generations, from beginnings in 1923 as the Queensland Sugar Board.  

QSL has served the industry well in its role operating our bulk sugar terminals but now, with Sugar Terminals Limited’s decision to insource sugar terminal operations, it has evolved into a sugar marketing company only.  

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The upcoming shareholder vote to modernise the constitution of QSL is one of the most important governance decisions our industry has faced in years. The issue is simple, and the stakes are high, that Growers and Millers who choose to market through QSL should be the ones who shape its future.

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For too long, outdated constitutional rules have allowed milling companies that not only compete with QSL, but supply no Miller Economic Interest (MEI) sugar to QSL, to retain the power to block changes which are supported by growers and millers who actually partner with QSL. This imbalance came into sharp focus at last year’s AGM, when Wilmar and MSF Sugar used Grower Economic Interest (GEI) sugar enabled under old governance arrangements to stop reforms that were backed by grower members and most milling members, including Mackay Sugar Ltd.

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Those rules were written for a very different industry. They were created at a time when QSL operated Queensland’s bulk sugar terminals on behalf of everyone. But since 1^st July 2026, terminal operations have transitioned to Sugar Terminals Limited. QSL no longer plays that industry wide role, and the constitutional settings that once made sense simply do not fit the organisation’s responsibilities today.

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The question before us now is straightforward: should businesses that compete with QSL continue to hold the same power as those who rely on QSL to market their sugar? Or put another way, should companies that supply no MEI sugar to QSL be able to block changes supported by the growers and millers who actually use QSL’s services?

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To me, and to the growers I represent, the answer is clear.

At the upcoming AGM on 22nd October, QSL members will again be asked to support constitutional reform that recognises the QSL of today, not the QSL of a decade ago. These changes would align voting rights with those who market through QSL, remove outdated terminal references, update governance arrangements to reflect the current competitive environment and give commercial partners a meaningful say in QSL’s future

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These reforms are not about favouring one group over another. They are about fairness, transparency, and ensuring that QSL is governed by those who actually depend on it. When growers choose QSL as their marketer, they deserve confidence that their voice matters and that their marketer is not being held back by competitors with no commercial relationship to it.

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This debate also sits within a broader national conversation. The Australian Government is currently reviewing the Sugar Code of Conduct which sits beside the state’s grower choice legislation.  These are the two major tools to ensure that competition is fair and the playing field is level. QSL has made its position clear: those who choose QSL should have a meaningful voice in how QSL is governed. I strongly agree.

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Our growers rely on QSL to market their sugar competitively, transparently, and independently. QSL has earned that trust over many years. But trust alone is not enough its governance must reflect the real structure of today’s industry.

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It is time for QSL’s constitution to catch up.

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As growers, we have always stood up for fairness and accountability. We know that strong governance leads to strong outcomes. The proposed reforms are sensible, overdue, and essential to ensuring QSL remains a reliable, competitive marketer for the growers and millers who choose to work with it.

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