Forward pricing is something the Australian sugar industry is fortunate to have access to – there are very few other industries and commodities that have this option. Mackay growers were the first in Australia to be able to individually forward price, and have had access to innovative and flexible forward pricing arrangements for many years.

But why should you consider forward pricing?

Forward pricing is a valuable tool for growers. It provides price certainty for growers for up to four years ahead of the current season, and also helps smooth cashflow. ‘Locking in’ a proportion of your crop at a given price can be important not only for day-to-day business management, but also to access finance and plan for the future.In some years, in-season prices will outperform the forward pricing average, and growers that don’t forward price will receive a higher price than those that forward priced a proportion of their sugar. However, growers that don’t forward are taking a risk that the in-season price will be higher than the price over the four-year forward pricing window. Achieving the highest possible price is not what good risk management is about – pricing over a five-year rather than a one-year window (which is what we have for in-season pricing) helps manage volatility and achieve returns that keep cane farming viable. Five years is a long time in the raw sugar market. In that time, prices can go from high to low, and back again. 

QCS’ forward pricing options are flexible and simple for you to manage. We don’t require you to work out contract expiries or price in specific amounts. Features include:
  • You can price up to four seasons ahead of the current season, within the limits for the relevant season
  • Sugar is committed for the relevant season once it is priced. Until then, you can add or remove tonnage
  • Sugar that is not priced during the pricing period for the relevant season becomes in-season tonnage
  • You can let QCS manage the pricing and marketing decisions for you or control your own pricing outcomes

If you want to manage your own production risk, you can do so via the QCS Grower Managed Pricing pool (subject to eligibility criteria).

FIND OUT MORE

Browse our forward pricing page, or contact QCS Grower Services Officer Arthur Douglas on 0447 534 791 or via email.

Login to the Pricing Portal

If QCS is the marketer for all or some of your GEI sugar and you would like to forward price online, please contact us  to arrange access to the Pricing Portal.

Pricing Portal