3 April 2014

QSL disappointed by Wilmars intention to notify Queensland Sugar Limited (QSL) is disappointed by Wilmars intention to provide notice that it will not rollover its Raw Sugar Supply Agreement (RSSA) in June 2014, however they will remain in the QSL system until at least mid-2017, and QSL will continue to focus on maximising the value that the current collaborative approach provides to the Queensland sugar industry. QSL strongly believes that the majority of millers and growers support the QSL system, as it delivers transparent and overall maximum value to the entire Queensland sugar industry. QSL CEO Greg Beashel said there was clear contractual arrangements with the RSSAs that meant any party providing a notice would remain in the system for three years and any changes to this would need to be agreed by QSLs members. Nothing changes at QSL over the next three years and we will continue to deliver transparent value to our members through our four value offerings - financing, pricing, marketing and logistics - with all profits returned back to the industry, Mr Beashel said. QSL CEO Greg Beashel said significant value comes from keeping Queenslands export raw sugar together to maximise revenue and minimise costs and therefore hoped an agreeable long-term marketing solution could be arranged within the industry before this time. We acknowledge that there are new players and ownership structures in the industry with different capabilities and last year there was a request by our members to provide flexible marketing options that maximised returns to the industry, Mr Beashel said. In response, the industry agreed to provide millers with the option to sell their economic interest sugar and the industry has been working on a sustainable model for the future of the Queensland sugar industry. It is disappointing that while these discussions are continuing, Wilmar is considering providing notice, however we hope that the industry can come together and agree on a more collaborative sustainable marketing model for the future. We acknowledge Wilmars trading position however, we believe there is another solution that can be worked out where we retain cost efficiencies for the entire Queensland sugar industry in continuing to move Queenslands bulk sugar through our shipping and ports, financing, and price risk management services.

We look forward to working with our members to find a solution that preserves the value that QSL creates in our four value offerings; financing, pricing, marketing and logistics. This will be our focus for the immediate-term. Mr Beashel said he was pleased with the support that had been shown for QSL, in particular the unequivocal support from CANEGROWERS and ACFA, as well as those members who were committed to remain in the QSL system. QSL was formed by the Queensland sugar industry, for the Queensland sugar industry and exists to serve the needs of its members and to optimise the value of the Queensland sugar industry for all participants; millers and growers, Mr Beashel said. ENDS For more information: Samantha Santy Samantha.santy@qsl.com.au 0438 298 289