Sugar markets start to firm as 2024-25 beet campaign ends

Global sugar prices have started to pick up since the start of 2025 due to increased demand and lower production forecasts across Asia, Brazil and Europe.

Industry forecasts suggest the 2025-26 EU and UK sugar beet crop area to be down by between 5% and 8% on the year at roughly 1.55m hectares, which could keep supplies tight and support prices in the longer term.

NFU Sugar has tentatively forecast that growers could receive a market-linked bonus payment in the region of £32-£33/t for 2025-26, if global markets continue to trade at current levels.

See also: Weather helps reduce beet virus yellows risk

Gareth Forber, NFU Sugar commercial and market insight manager, said: “EU sugar prices have turned a corner with plantings expected to fall sharply in the coming campaign.

“World prices have also rallied; while most still expect a return to surplus in 2025-26, confidence in this idea has been hit by disappointing harvests in Asia this year and drier-than-normal weather in Brazil.”

NFU Sugar board appointee and sugar trader Paul Harper added that the beet price had been trading in the mid-£20s but had lifted to £29.24 last week.

British Sugar and NFU Sugar came to an agreement on pricing last summer for the 2025-26 sugar beet crop, with a fixed price of £33/t for up to 70% of a grower’s contract.

Growers could also choose to be paid using 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.

UK market

The 2024-25 sugar beet campaign came to a close on 24 March, with 7.7m tonnes being processed by British Sugar across its four factories at Bury St Edmunds, Cantley, Newark, and Wessington, producing roughly 1.1m tonnes of sugar.

Dan Green, agriculture director at British Sugar, said growers had delivered average or better-than-average yields and he was optimistic with drilling now well under way for the coming season.

Improved weather conditions have allowed plantings to progress well on farm, but the area is expected to be slightly lower overall.

The domestic sugar beet sector was dealt a blow in January when the government denied an emergency application for the use of Cruiser SB neonicotinoid seed treatment in England, which has left the crop more susceptible to virus yellows.

Mr Green said: “The colder winter and frost patches seen across our growing areas throughout January and February are expected to keep levels of aphids carrying virus yellows disease to a minimum, but as always this is closely monitored across the industry. In addition, on-farm hygiene will be crucial to further minimise risk posed by aphids.

“Providing aphid populations stay low, and the summer weather is on our side, we expect to see healthy crops, strong yields, and good margins for our growers.”