Sugar beet contract agreed for 2025/26
29th July 2024
British Sugar and NFU Sugar say they have concluded negotiations and agreed a deal for the 2025/26 sugar beet contract.
The details of the sugar beet contract have been released today (29th July) – months earlier than last year when fraught negotiations extended into December.
British Sugar and NFU Sugar said they both recognise the importance of choice and flexibility.
Growers have been offered the following options:
- A one-year fixed price contract at £33.00/t, for up to 70% of your contract
- A one-year contract with a guaranteed base price of £30.70/t plus an improved Market-linked Bonus
- A Futures-linked contract, for up to 50% of your contract.
Growers can choose to split their tonnage between any of these contract 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, in line with previous years.
A significant enhancement to this year’s contract however is the relaxed performance rules for one year only.
This ensures growers retain their Contract Tonnage Entitlement (CTE) in 2026 if they deliver at least 70% of their contracted tonnage in 2025/26.
Timely agreement
NFU Sugar board chair, Michael Sly, commented: “I am pleased we have come to a timely agreement with British Sugar for the 2025 sugar beet contract.
“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.”
The Yield Protection acknowledges the threat of virus yellows, and the likelihood that Cruiser SB won’t be available under emergency use next year, Mr Sly added.
Meanwhile, the relaxation of the performance rules recognises that some growers may wish to grow less this year, but retain their right to grow as normal further down the line.
READ MORE: British Sugar pauses contracting and seed ordering
READ MORE: Sugar beet negotiations fail to reach an agreement
Working together
British Sugar managing director Keith Packer added: “This year’s contract offer to growers has been created in partnership with NFU Sugar.
“Over the last few years, we have learned how important flexibility and choice is to our growers and have therefore made sure that these are at the heart of this year’s offer.”
The core price reflects the current downturn in sugar markets, he continued, but mechanisms have been built in so that growers will share in any potential upside.
“This means if sugar markets do well, we all do well,” he added.
British Sugar has redesigned its seed working model in collaboration with NFU Sugar and are now building a different type of contracting model.
“We will continue to evolve and adapt how we work together. Growers are at the core of our homegrown sugar industry, and we will only succeed if we work together,” he concluded.
Lengthy negotiations
Last year British Sugar contacted its 2,300 sugar beet growers on 1st November with details of its contract offer for 2024/25, prompting a backlash from NFU Sugar.
The price was not agreed until December after weeks of intense negotiations – with particular disagreement over the futures linked contract.
The two organisations acknowledged that the lengthy negotiations had not served the industry well.
A shortened negotiation timeline was agreed to deliver a final price and contract earlier in the year.
Read more sugar beet news.
