‘Flexible and fair’ offer for sugar beet

Sugar beet growers will receive a lower price for next season’s crop – but will share in any market upside.

Price talks between NFU Sugar and British Sugar concluded with what both sides described as a flexible deal for 2025/26. The deal allows growers to split their tonnage between various contract options:

Growers can choose to split their tonnage between any of the options. An enhanced Yield Protection option is available for a reduced contract price of £31.60 for the fixed price option or £29.30 for the market-linked bonus and futures options.

A cash advance, late delivery allowance and frost insurance are also being offered. The deal was agreed in July – making it a more timely agreement than the £40/t price agreed for the current crop last December.

• a one-year fixed price of £33.00/t for up to 70% of the contract

• a one-year contract with a guaranteed base price of £30.70/t plus an improved market-linked bonus;

• a futures-linked price for up to 50% of the contract

Global market

NFU Sugar chairman Michael Sly said: “The offer represents a fair deal in the context of the global sugar market. Importantly it provides growers with a range of choices dependent on their appetite for risk.”

Other aspects of the deal include a yield protection element which acknowledges the continuing threat of virus yellows disease – and the likelihood that the industry will no longer be granted emergency use of neonicotinoid seed treatments.

Mr Sly continued: “The relaxation of the performance rules recognises that some growers may wish to grow less this year but retain their entitlement to grow as normal in future years.”

British Sugar managing director Keith Packer said the processor recognised that flexibility and choice were important to growers – and had made sure that both were at the heart of this year’s offer.

“Whilst the core price reflects the current downturn in sugar markets, we have built in mechanisms which mean growers will share in any potential upside. This means if sugar markets do well, we all do well.”

Mr Packer said: “We have redesigned our seed working model in collaboration and we are now building a different type of contracting model. We will continue to evolve and adapt how we work together.

He added: Growers are at the core of our homegrown sugar industry, and we will only succeed if we work together.”