British Sugar and NFU agree £33/t contract price for 2025-26

NFU Sugar and British Sugar have agreed to a fixed price of £33/t for the 2025-26 sugar beet crop, £7/t less than the 2024-25 contract.

Global sugar markets have fallen back by more than 20% so far this year and the industry had forecast a slight reduction in price, but the size of the fall will come as a disappointment to many growers.

The £33/t fixed price can account for up to 70% of a grower’s contract, with options to also select a futures-linked contract for up to 50% of their agreement, or receive a £30.70/t guaranteed base price plus an improved market-linked bonus.

See also: Sugar beet contract prices likely to be below £40/t next year

Additionally, a reduced fixed contract price of £31.60/t or market-linked bonus and futures option of £29.30/t are available with enhanced yield protection.

Further offerings, such as a cash advance, late delivery allowance and frost insurance, will also once again be available for growers.

NFU Sugar board 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.

“The yield protection acknowledges the continuing threat of virus yellows disease and the likelihood that the industry won’t be granted emergency use of Cruiser SB in 2025.”

Growers will be able to retain their contract tonnage entitlement for the following year if they are able to deliver at least 70% of their required tonnage in 2025-26.

Mr Sly added that the relaxed rules recognised that some growers might want to grow less this year but retain their entitlement to grow as normal in future years.

Keith Packer, managing director at British Sugar, said: “Over the past 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.

“While 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.”

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