NFU reaches deal on sugar beet for bioethanol

The NFU has reached agreement with British Sugar over the supply of sugar beet for bioethanol production, guaranteeing growers an outlet for surplus production.

The three year deal has a built in mechanism which offers growers a minimum price for surplus beet on an increasing scale as and when the demand for and value of ethanol rises. It is also flexible enough to allow growers access to the most lucrative markets, whether bioethanol or another market such as yeast.

NFU sugar board chairman, Mike Blacker, said: “We believe this flexible deal offers growers access to the best returns on their surplus production now that C sugar exports are banned. In the post restructure environment it is important that we as growers forge partnerships which provide access to emerging markets. However, I must urge that growers do not use this deal as an excuse to continue the practice of deliberately growing over and above their contracted tonnage.”

The deal has been agreed on the condition the Wissington Bioethanol Plant gets the green light in the near future and its short term nature reflects the need to reassess the arrangement in three years time to ensure it reflects the best interests of beet growers in the UK.