The Federal Government has introduced new sugar industry regulations under the Competition and Consumer (Industry Code – Sugar) Regulations 2017 (Cth). The Regulations will impact the relationships between millers and marketers by obliging players to act in good faith when negotiating supply contract agreements. Under the Regulations, any dispute arising from an intended supply contract in the sugar industry must be resolved pursuant to the processes set out in the Regulations. This includes the appointment of an independent arbitrator. The Regulations come after the conclusion of a long-running dispute between miller Wilmar and marketer Queensland Sugar Limited which disrupted what was formerly a centralised market for sugar sale. The new Regulations do not regulate the sugar market that operates largely unregulated, rather it seeks to standardise dispute resolution to ensure the ongoing commercial viability of the sugar industry.
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