CANEGROWERS chief executive officer Ian Ballantyne said the industry was pleased the Chinese had recognised the importance of the relationship with suppliers from the outset.

“Offer to open a dialogue as and if the offer progresses, would be welcomed - this would include understanding the potential for some form of ‘equity’ in the new company,” Mr Ballantyne said.

The relationship between growers and CSR had not always been amicable, and growers had put the weight of their support behind the demerger of the sugar business from the building products and aluminium interests on the basis that a sugar-focused company (and board) would likely produce better outcomes for the entire operation including milling performance and grower relationships.

Mr Ballantyne reiterated that growers had supported the demerger of the sugar business – particularly in its dealings with its suppliers.

He said that at this early stage, it was unclear as to whether Bright Foods would merely roll the sugar business into its conglomerate or retain some local independence.

Ballanytne indicated that the current marketing arrangements through QSL provided both marketing and operational transparency and financial underpinning for forward pricing.

“It is not clear as to Bright Foods’ intentions in this regard, although indications suggest there could be a change and a focus on supply to China, which in turn could signal the end of the current exporting arrangements for all industry players,” he says.

“While speculation and lack of clarity remains in respect to whether the Bright Foods position is a pre or post demerger ‘offer’, the industry will keep a watching brief as to the likelihood of success of the approach by Bright Foods.”