Sugar beet growers have been offered a guaranteed minimum beet price of £37.50/t for the 2024-25 contract year by British Sugar.

However, a final deal is yet to be agreed between British Sugar and NFU sugar.

This price is down marginally compared with £40/t for the 2023-24 contract year, but still up on previous years.

See also: British Sugar offers £3,000/ha to encourage early beet deliveries

British Sugar wrote to growers confirming the updated price offer and said that the higher on-farm costs which growers faced last year had since fallen back.

In a letter to growers, Daniel Green, agriculture director at British Sugar said:

“Since the beet price was set last year, thankfully, total grower input costs have reduced; notably fertiliser by 50%. At the same time, prices of other crops have also fallen with the wheat price reducing by 30%, and OSR by 35%.

“Despite these changes we are keeping our fixed price element as high as we can for 2024/25 because we want beet to remain a financially attractive part of your rotation, encouraging you to invest in beet for the future.”

A market-linked bonus is also due to be paid to growers by British Sugar, this pricing mechanism would allow growers to receive an increased payment assuming the market conditions remain firm.

Mr Green added: “If sugar markets in 2024/25 are the same as today, we want to give you a top-up, taking the overall price of your beet crop to above £40/t.”

Farmers Weekly also contacted the NFU for comment on the offer, NFU director general Terry Jones said as negotiations are still ongoing with British Sugar they are unable to comment at this stage.