Thanks for choosing Wilmar

Firstly, thank you to all who have entrusted us with your GEI marketing nomination for the 2024 season.

For many, this decision was made a long time ago when the 2024 season opened for pricing in July

2021.

At that time, target prices where trading sub $400/t and the thought of $800/t for sugar was a dream. At

the time of writing, we have seen a high of $840/t trade for 2024 season, with hopefully the promise of

more to come.

The reasons for the dramatic rise over the last years are well documented in the persistent deficit of

supply against demand and the consequent running down of global stocks.

Our current average hedge rate for Target price growers in the ’24 season is just under $600 with

approximately 40 per cent of committed tonnes priced. This provides a significant underwriting of next

year’s production and a big buffer for growers if prices were to collapse unexpectedly.

Nevertheless, it is hard to avoid sellers regret when the market moves up so dramatically. We have lots

of conversations with growers who feel like they have lost money by selling too early. In simple terms

there is a loss, as in an opportunity loss.

With perfect knowledge we would all be unhedged and waiting for someone to ring the bell, notifying the

top of the market was here! However, we operate in the space of imperfect knowledge.

Cane growers need to think in risk management terms and not trading terms whereby margin

management is the ultimate goal. It is not about picking the high of the market; it is about taking control of

your income and making decisions that are right for your business. All of us have a different appetite for

risk and therefor there is not a one size fits all when it comes to pricing sugar.

For us in Wilmar Marketing, our goal is to give you the best information we can to help you make the best

decision on pricing given your circumstances. We provide simple yet flexible pricing tools and payment

terms to assist with cash flow.

For those of you who entrust us to price your GEI Sugar through the Production Risk Pool we dedicate

significant resources aiming to maximise returns. Our Production Risk Pool has outperformed QSL’s

Harvest Pool for five years running (see graph).

If you would like more information, please contact our Grower Marketing consultants, Meghan Wilson on

0437 669 118 or Fiona Villis on 0437 297 978