Forward pricing, known as long-term banded pricing (LTBP) to Mackay, Mossman and Tablelands growers, enables growers to lock in sugar prices beyond the current season.
Growers can price part of their estimated production for up to three seasons ahead. The proportion of estimated production that can be priced may differ by season and according to the agreements the grower has in place.
LTBP can be conducted in one of two ways:
- Grower individual pricing orders
- ‘MSL to decide’ pricing
Grower individual pricing orders
Growers can nominate a percentage of their available tonnage for the relevant season, and a minimum pricing level at which they would like their sugar to be priced.
This gives growers control over their own pricing, and the freedom to place orders ‘any time, any place’.
‘MSL to decide’ pricing
‘MSL to decide’ allows growers to nominate MSL to decide a pricing level for forward pricing in a relevant season.
‘MSL to decide’ pricing mandates are recommended by QCS’ pricing team under the rules set by QCS’ pricing risk management policy and approved by the MSL Board.