Sugar beet contract agreed for 2022

The one-year contract for 2022 will pay a fixed price of £27 per adjusted tonne. Current multi-year contracted growers will have the option to upgrade to a fixed £25 per adjusted tonne by contracting for an additional contract year. There will be no separate market-linked bonus. These prices are on a zero-crown tare basis, meaning growers are paid for the entire roots of beet they deliver.

In addition, NFU Sugar and British Sugar have agreed to continue the innovative futures-linked variable priced contract, giving growers the ability to make their own pricing decisions for a portion of their contract. This will now be open to all growers, who will have the option to allocate up to 10% of their tonnage onto this contract.

Also, new for this year, is a local premium for all growers up to 28 miles contract distance from their nearest factory. With a start offering of £2/t for growers up to nine miles, this will then reduce on a linear scale down to 10p/mile up to 28 miles.

NFU Sugar board chairman Michael Sly said: “Following another difficult negotiation, we have finally managed to agree terms with British Sugar. The substantial increase in the one-year contract price reflects the increased costs and risk sugar beet growers now face and recognises the fact that sugar beet must offer returns comparable with alternatives.

“After a successful pilot this year, the futures-linked variable priced contract will now be available to all UK sugar beet growers. This contract offers both growers and the processor the potential to lock in attractive prices, meaning all parties can benefit from it. Other countries around the EU are starting to follow our lead on this and I am sure that this type of contract will become increasingly common as EU countries modernise their thinking and practices.”

British Sugar agriculture director Peter Watson said: “We are pleased to be able to share the agreed contract prices with growers after a long negotiation. Our aim was always to agree a fair and sustainable price for all and we believe this is what we have achieved.

“Together with our Virus Yellows assurance scheme, the new local premium and the futures-linked contract we believe the contracts offer a competitive package for growers.”

Farmers will be able to contract by mid-October, with beet growers who use British Sugar online able to return their contract offer on the My British Sugar portal. Growers who do not use the online portal will receive their contract offer in the post.