British Sugar and NFU Sugar have announced the sugar beet contract terms for next year heralding a 'new era' with both one and three year terms available.
British Sugar said they were looking for new growers for their £22/tonne guaranteed minimum price contracts.
"This innovative agreement is a first for our UK beet sugar industry and it will provide security for our growers by confirming their contract entitlement and providing a guaranteed minimum price," said Colm McKay, British Sugar's Agriculture Director.
"In addition, when market conditions are good, our growers will share in the benefits.
"This will also mean that sugar beet competes in the rotation on farm and British Sugar can compete in a very competitive market place."
NFU Sugar Chairman, William Martin said: "This agreement provides a solid basis for the future of UK beet production. The sugar market link, and the opportunity for a multi-year contract, will allow growers to plan and invest for the future.
"This deal represents a clear signal from British Sugar and NFU Sugar that by working together, we can face the challenges of a more competitive market place with confidence."
Over the last nine months British Sugar and the NFU jointly held various open forum events for growers throughout the region.
Additional terms
• Give current growers first refusal regarding contracted tonnage in 2017
• Formalise ‘Contract Tonnage Entitlement’ (CTE ) for all growers following the end of quotas in 2017
• All Industrial Contract (ICE) will convert into ‘CTE’
• Increase the transport allowance maximum distance from 50 miles to 60 miles
• Use the ‘most practical’ legal routes rather than the current ‘shortest’ legal routes for deciding transport distances.
