NFU considering legal action to protect sugar growers

The NFU is considering taking legal action to protect the interests of sugar beet growers after British Sugar announced the closure of two factories and talks failed on contract negotiations.

During a press conference held today NFU Sugar Board chairman John Hoyles said he wouldn’t rule out using arbitration as a last resort in order to get a fair price for sugar beet growers and guarantee contracts were honoured for next year’s crop.

The NFU also wants guarantees that additional transport costs incurred by growers forced to deliver to other factories will be met by British Sugar, as agreed in previous contracts. The processor announced last week its intention to close both plants at York and Allscott in Shropshire.

Speaking at the press briefing Mr Hoyles said: “British Sugar is making decisions as a monopoly, putting the whole of the sugar industry at stake. We know from our contacts with growers that they are not prepared to grow sugar beet at the EU minimum price proposed of £17.50 per tonne, and that can only mean insufficient beet will be grown to sustain the industry in future years.”

Negotiations are continuing between the NFU and British Sugar in the hope of resolving remaining sticking points, including growers being paid for beet crowns, but the NFU will move to arbitration if constructive talks fail to take place.

My Hoyles said: “Growers should be paid for the entire beet British Sugar makes sugar from including the crowns and we want a fair price. But we need to work together to keep the industry sustainable. If growers fulfilled last year’s contract they are entitled to next year’s.

“We know that we will have to take some of the pain, but we equally thought British Sugar would share some of that pain.

“We are fighting for the growers that have been doing everything they have been asked to do by British Sugar and now the rug has been pulled from under their feet.”