NFU Sugar has written to its beet-growing members, assuring them that it has not struck any price deal with British Sugar for the 2024 crop, and that negotiations are continuing.

The letter to about 2,000 growers was prompted by an earlier letter from British Sugar, dated 25 September, in which it explained that it was offering a “guaranteed minimum price” of £37.50/t.

See also: British Sugar announces £37.50/t contract for 2024-25

This was lower than the £40/t being paid for the 2023 crop, said British Sugar, but was justified by the fact that growing costs had come down since last year, as had the price of competing cereals and oilseeds.

British Sugar also promised to pay a top-up next autumn, if sugar markets remain as firm as they are today, as well as offering a “yield protection” product and a futures-linked contract.

But while the letter explained that no final deal had been agreed with the NFU, it was seen by many growers as an attempt to manage expectations and a break from the normal method of “behind closed doors” negotiation.

Other growers have mistaken it as the final price offer from British Sugar for next year’s crop.

‘Surprise and concern’

In its follow-up letter to growers, NFU Sugar said many growers had expressed “surprise and concern”, as “some have drawn the conclusion that we have agreed to the contract price British Sugar quoted”.

“For the avoidance of any doubt, NFU Sugar has not agreed any contract price, or terms, for the 2024 sugar beet crop with British Sugar,” it says.

“Negotiations remain ongoing and we will write to you again when there is more to say.”

The union had previously derided British Sugar’s contract offer as “markedly less than the £40/t for the 2023 crop, despite the significant increase in European and world sugar prices since last year’s negotiation”.

“Rather than agree a contract price at the bare minimum, to get a certain area of sugar beet planted, our growers should receive a contract package that reflects the large increase in market value of the sugar British Sugar sells.”

But British Sugar has countered that sugar beet planted in spring 2024 is only sold as sugar between October 2024 and September 2025, and “have not agreed many sales contracts for that period yet”.

“We simply can’t take all the sugar price risk in what is a very volatile market,” said British Sugar agriculture director Daniel Green.