Outlook 2024: Sugar beet still has place in rotations

This season’s sugar beet price of £40/t has been a welcome relief to many growers who were considering ceasing growing the crop, says Andersons director Jamie Mayhew.

Also, after many months of wrangling over the 2024-25 contract, a deal was agreed in late December between British Sugar and NFU Sugar.

Growers will be able to choose between a fixed price of £40/t, or a “core price” of £38/t plus a market-linked bonus.

A futures-linked option is also available for up to 35% of each contract (compared with the current crop contract maximum of 20%), as well as a £1/t reduction for yield protection cover.

See also: British Sugar and NFU Sugar strike new price deal

Despite the pressure on farms to reduce soil damage, cut emissions, use fewer inputs and undertake more regenerative practices, there is still a strong place in the rotation for this crop, even at £38/t.

Based on current commodity prices, returns over two years from a crop of sugar beet, followed by a late-established wheat or spring barley, are likely to be far greater than a pulse break crop followed by a well-established wheat crop.

Higher white sugar price

On the other hand, the EU average white sugar price is about 60% more than last year and growers feel they should benefit, allowing them to sell a greater proportion.

Sugar content was very low (circa 15%) when factories opened in September.

However, it recovered well and adjusted yields strengthened over the following few weeks.

The extra income from improved yields will be welcomed while growers struggle to harvest the crop due to the current wet autumn.  

Budgeting for the 2024 harvest at £38/t gives a breakeven yield for the 2024-25 season of about 65t/ha.

This does not take into account hidden costs related to growing sugar beet, such as rectifying damaged soils and tracks, as well as the effect on following crops. These should also be considered.