British Sugar says it has no plans to withdraw its offer to beet growers of £38/t for the 2024/25 supply contract, risking further fallout with the NFU.

The NFU has said publicly it will not resume negotiations with British Sugar while what it terms the processor’s “unilateral” beet price offer to growers remains on the table.

However, a British Sugar spokesman said it had not received any official request or letter from the NFU asking it to withdraw its offer.

See also: Defra tells NFU and British Sugar to resume beet price talks

“We remain fully committed to following the dispute and resolution process. We have not withdrawn our offer, which is consistent with that process and has been well received by many growers.”

However, the NFU told Farmers Weekly it did not believe British Sugar’s “unilateral” beet price offer is consistent with the established annual process of setting the beet price.

More than 800 growers joined an NFU Sugar call on 3 November to discuss British Sugar’s actions.

On Wednesday afternoon (8 November), the union launched a pledge for beet growers to show their support for NFU Sugar’s role process. Within less than two-and-a-half hours, it had been signed by 372 growers.

“It is very clear that feelings among growers on this issue are running very high,” said an NFU spokesman, disputing British Sugar’s assertion that its price offer had been “well received” by growers.

Beet growers point out that global sugar prices remain high, with futures-linked markets rising above £60/t in recent weeks.

They are concerned that British Sugar’s offer of £38/t is well below the market value and also below the current beet price offer of £40/t, yet the costs of producing crops have risen this year.

Historic market highs

Earlier this week, Defra issued a direction to British Sugar and the NFU that they must resume negotiations now and agree the 2024/25 sugar beet price.

The two parties have been holding talks over the beet price since May, but have so far failed to reach a breakthrough.

NFU vice-president David Exwood said: “British Sugar need to maintain the area of beet grown in the UK and NFU sugar growers want to supply the beet from a profitable break crop that reflects the buoyant world market in sugar.

“The farming minister has made his position clear. Let’s hope that sense prevails.”