sec.33BTerms of supply contract about sale of on-supply sugar

### sec.33B Terms of supply contract about sale of on-supply sugar This section applies to a supply contract for cane between a grower and a mill owner unless the grower is a related body corporate of the mill owner. The supply contract must include each of the following— a term providing for the amount, or the basis for working out the amount, of the payment to the grower for the supply of the cane (the cane payment ); unless the grower and mill owner otherwise agree—a term (a related sugar pricing term ) requiring the amount of the cane payment to be worked out in a stated way by linking that amount to the sale price of the on-supply sugar to which the supply contract relates; if the supply contract includes a related sugar pricing term, both of the following, unless the grower and mill owner otherwise agree— a term requiring the mill owner to bear the sale price exposure for the sale of a proportion of the on-supply sugar that is worked out in a stated way; a term (a GEI sugar price exposure term ) requiring the grower to bear the sale price exposure for the sale of the remaining on-supply sugar (the grower economic interest sugar ); if the supply contract includes a GEI sugar price exposure term— a term (a GEI sugar marketing term ) requiring the mill owner to have an agreement with a stated entity (the GEI sugar marketing entity ) to sell the quantity of the on-supply sugar that is at least equal to the quantity of the grower economic interest sugar; and unless the grower and mill owner otherwise agree, a term providing for an entity nominated by the grower to be the GEI sugar marketing entity; if the supply contract provides for an entity nominated by the grower to be the GEI sugar marketing entity—a term requiring the mill owner to deliver for sale the quantity of the on-supply sugar that is at least equal to the quantity of the grower economic interest sugar, as directed by the entity, within a stated reasonable period. However, subsection (2) (d) does not apply if the supply contract states that the mill owner will sell the on-supply sugar. Without limiting subsection (2) (e) , the stated period must be reasonable having regard to the likely period in which the mill owner could deliver the on-supply sugar for sale to a related body corporate of the mill owner. See section 298 . s 33B ins 2015 No. 32 s 6 (sec.33B-ssec.1) This section applies to a supply contract for cane between a grower and a mill owner unless the grower is a related body corporate of the mill owner. (sec.33B-ssec.2) The supply contract must include each of the following— a term providing for the amount, or the basis for working out the amount, of the payment to the grower for the supply of the cane (the cane payment ); unless the grower and mill owner otherwise agree—a term (a related sugar pricing term ) requiring the amount of the cane payment to be worked out in a stated way by linking that amount to the sale price of the on-supply sugar to which the supply contract relates; if the supply contract includes a related sugar pricing term, both of the following, unless the grower and mill owner otherwise agree— a term requiring the mill owner to bear the sale price exposure for the sale of a proportion of the on-supply sugar that is worked out in a stated way; a term (a GEI sugar price exposure term ) requiring the grower to bear the sale price exposure for the sale of the remaining on-supply sugar (the grower economic interest sugar ); if the supply contract includes a GEI sugar price exposure term— a term (a GEI sugar marketing term ) requiring the mill owner to have an agreement with a stated entity (the GEI sugar marketing entity ) to sell the quantity of the on-supply sugar that is at least equal to the quantity of the grower economic interest sugar; and unless the grower and mill owner otherwise agree, a term providing for an entity nominated by the grower to be the GEI sugar marketing entity; if the supply contract provides for an entity nominated by the grower to be the GEI sugar marketing entity—a term requiring the mill owner to deliver for sale the quantity of the on-supply sugar that is at least equal to the quantity of the grower economic interest sugar, as directed by the entity, within a stated reasonable period. (sec.33B-ssec.3) However, subsection (2) (d) does not apply if the supply contract states that the mill owner will sell the on-supply sugar. (sec.33B-ssec.4) Without limiting subsection (2) (e) , the stated period must be reasonable having regard to the likely period in which the mill owner could deliver the on-supply sugar for sale to a related body corporate of the mill owner. See section 298 . - (a) a term providing for the amount, or the basis for working out the amount, of the payment to the grower for the supply of the cane (the cane payment ); - (b) unless the grower and mill owner otherwise agree—a term (a related sugar pricing term ) requiring the amount of the cane payment to be worked out in a stated way by linking that amount to the sale price of the on-supply sugar to which the supply contract relates; - (c) if the supply contract includes a related sugar pricing term, both of the following, unless the grower and mill owner otherwise agree— (i) a term requiring the mill owner to bear the sale price exposure for the sale of a proportion of the on-supply sugar that is worked out in a stated way; (ii) a term (a GEI sugar price exposure term ) requiring the grower to bear the sale price exposure for the sale of the remaining on-supply sugar (the grower economic interest sugar ); - (i) a term requiring the mill owner to bear the sale price exposure for the sale of a proportion of the on-supply sugar that is worked out in a stated way; - (ii) a term (a GEI sugar price exposure term ) requiring the grower to bear the sale price exposure for the sale of the remaining on-supply sugar (the grower economic interest sugar ); - (d) if the supply contract includes a GEI sugar price exposure term— (i) a term (a GEI sugar marketing term ) requiring the mill owner to have an agreement with a stated entity (the GEI sugar marketing entity ) to sell the quantity of the on-supply sugar that is at least equal to the quantity of the grower economic interest sugar; and (ii) unless the grower and mill owner otherwise agree, a term providing for an entity nominated by the grower to be the GEI sugar marketing entity; - (i) a term (a GEI sugar marketing term ) requiring the mill owner to have an agreement with a stated entity (the GEI sugar marketing entity ) to sell the quantity of the on-supply sugar that is at least equal to the quantity of the grower economic interest sugar; and - (ii) unless the grower and mill owner otherwise agree, a term providing for an entity nominated by the grower to be the GEI sugar marketing entity; - (e) if the supply contract provides for an entity nominated by the grower to be the GEI sugar marketing entity—a term requiring the mill owner to deliver for sale the quantity of the on-supply sugar that is at least equal to the quantity of the grower economic interest sugar, as directed by the entity, within a stated reasonable period. - (i) a term requiring the mill owner to bear the sale price exposure for the sale of a proportion of the on-supply sugar that is worked out in a stated way; - (ii) a term (a GEI sugar price exposure term ) requiring the grower to bear the sale price exposure for the sale of the remaining on-supply sugar (the grower economic interest sugar ); - (i) a term (a GEI sugar marketing term ) requiring the mill owner to have an agreement with a stated entity (the GEI sugar marketing entity ) to sell the quantity of the on-supply sugar that is at least equal to the quantity of the grower economic interest sugar; and - (ii) unless the grower and mill owner otherwise agree, a term providing for an entity nominated by the grower to be the GEI sugar marketing entity;