British Sugar and NFU Sugar strike new price deal
© Tim Scrivener A deal has been agreed between British Sugar and NFU Sugar for the 2024-25 sugar beet contract after months of negotiations.
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, as well as a £1/t reduction for yield protection cover.
See also: New beet offer from British Sugar but still no agreement
Frost insurance, a cash advance option, late delivery allowance, and a local premium of up to £2/t for growers within 20 miles of any British Sugar factory will all remain the same as the previous year’s contract.
British Sugar and NFU Sugar have also agreed that it will have a shortened negotiation timeline next year in order to deliver a final price and contract by 30 October.
Keith Packer, managing director at British Sugar, said: “I am pleased that we have reached a contract offer for the 2024-25 growing season with NFU Sugar.
“We believe this offer represents great potential for growers and shows the long-term commitment British Sugar has to our home-grown sugar industry.
“We are now looking forward to moving on and working together on key projects around sustainability, our critical Virus Yellows Pathway, and upholding a fair-trade policy environment.”
Michael Sly, chairman of the NFU Sugar board, said: “I would like to thank growers for their overwhelming support of NFU Sugar in these very difficult negotiations. It should be clear to everyone that grower unity with NFU Sugar has delivered this deal.
“We will continue to work tirelessly to ensure that our industry is modernised and growers always receive a fair share of the value of the sugar that comes from their beet.”
Contracting screens are due to open on Thursday 21 December.