BOUQUETS handed to MSF Sugar for making molasses available from the 2020 crush have turned to brickbats after it was revealed the company has significantly increased the price of the important stockfeed.
North Queensland politicians Senator Susan McDonald and Leichhardt MP Warren Entsch took aim at MSF last week after it was revealed the company would export most of the molasses produced from the 2020 crush to Thailand.
They say that would have left graziers and dairy farmers without supplies of the widely used winter stockfeed.
On Friday, the Thai-owned company reversed its decision, saying Australian customers could again again buy molasses.
However, only at a price - $250/tonne, about $100/t more than what it charged last year and $45t more than other mills.
MSF also requires customers lodge a $100/t deposit and take delivery of their orders by December 20.
Senator McDonald said MSF appeared to be attempting to price primary producers out of the market and export the molasses anyway.
"I've been told the price reflects MSF's expectations for a tough business year but it beggars belief they've set such a high price that it will likely exclude Australian customers," Senator McDonald said.
"I have written to the Agriculture Minister David Littleproud and I've spoken to the ACCC about what I believe is unfair conduct by MSF.
"I again ask the company to review its policy. Be fair, be reasonable and do the right thing."
Warren Entsch said although MSF had been pressured into continuing to supply the domestic market, the devil was in the detail.
"Like the fuel companies, MSF Sugar has been caught red-handed gouging its customers," Mr Entsch said.
"MSF Sugar confirmed in writing they would supply molasses at market price but they are the ones setting the price.
"For example, a business that is currently purchasing molasses at between $125 and $145/t is being forced to pay $250/t.
"To make matters worse, MSF Sugar now wants an upfront payment of $100/t, so a business with a 6000t contract is expected to pay $600,000 on confirmation of the pre-order before a single drop is delivered."
Mr Entsch said MSF tactics were "totally and utterly unethical" and "needs to be stopped".
"I fully support Senator McDonald's call for an immediate ACCC investigation and I hope they get the book thrown at them for their behaviour."
AgForce Cattle president Will Wilson said producers were concerned that Australian molasses from the 2020 crushing season was to be sold overseas.
"Historically, the only alternative for Queensland's multi-billion-dollar beef and dairy industries is to rely on unpredictable and expensive molasses imports from Asia, which AgForce has had to broker in the past to meet the industry's need," Mr Wilson said.
"AgForce fully supports Senator McDonald's work with the sugar industry and others to put systems in place that will avoid the anxiety and market uncertainty of last week's panic for future years."
Mr Wilson said he encouraged producers having difficulty sourcing molasses to contact their supplier in the first instance.
Comment is being sought from MSF Sugar.
