Challenging market conditions mean growers face lower sugar beet prices following last month’s contract agreement. NFU Sugar and British Sugar have agreed a headline one-year fixed price contract of £30/t for up to 65% of the contract for 2026/27 sugar beet crop. This compares to a price of £33/t for up to 70% of the crop for the current 2025/26 season.
Other contract options for the 2026/27 season include a one-year contract with a guaranteed base price of £25/t, plus a market-linked bonus for up to 100% of the contract. Growers can sign to an index-linked contract for up to 50% of the contract.
Contract holiday
Growers who decide it is unfeasible to grow beet during the 2026/27 season will be able to take a one-year contract holiday. This is being offered for up to 750,000 tonnes of the crop on first come, first served basis.
Transport allowances will be paid for growers carting beet up to 60 miles to their allocated factory. Farmers will also be able to claim an interest-free cash advance option, a late delivery payment and complimentary frost insurance.
British Sugar managing director Keith Packer said: “As the sugar industry continues to face challenging market conditions, I am pleased that we’ve agreed a deal for all, reflecting the current situation.
“This year’s contract is the product of many months of hard work with NFU Sugar, giving growers much-needed security and certainty at what is a volatile time for farm businesses,”said Mr Packer.
“We’re offering valuable options which include an interest-free cash advance, a market-linked bonus for a share of the upside when the market is favourable, and an index-linked contract for those with a greater appetite for risk and reward.”
NFU Sugar board chair Kit Papworth said the agreement reflected the state of the market. Some growers would still be able to grow beet profitably – although others would find it tough, he suggested.
“This deal offers growers choices to suit individual business circumstances and balances challenging sugar market conditions and the increasing costs and risks of growing sugar beet here in the UK.”