Sugar beet hauliers were "groomed" by British Sugar invest significantly and to grow their capacity, without guarantees of tonnage.
The allegation was made in the the Douglas report, an independent assessment of the British Sugar Industry Harvesting and Haulage Scheme.
The scheme was set up by British Sugar in 2010 to provide harvesting and haulage services to sugar beet growers.
One major issue the report states is that ‘groomed’ operators have allegedly been encouraged to grow capacity in previous campaigns and are then being allocated low or no tonnage as rates are deemed too high.
It goes on to say that reconciliation with ‘groomed’ hauliers is necessary to prevent the perception of British Sugar ditching operators solely on price, even after significant investment to grow their fleet capacity.
However, the report admits it found no evidence of wrongdoing within the scheme’s operation and any allegations of such appeared to be anecdotal only and without factual evidence.
Specific recommendations have been made to improve transparency and understanding and British Sugar, and will be implemented ahead of the 2018/19 sugar beet campaign.
Three principles
NFU Sugar and British Sugar have agreed three principles that the scheme must operate to and will now work together to make the changes.
The principles include maximising value to the industry, focusing on maximising yield potential from farm to factory and continuing to drive efficiencies.
The industry must be well run and operated fairly, organised appropriately and operated transparently; with clear, open, honest and timely communication.
Finally, the report recommends that the industry must encourage and reward best practice.
NFU Sugar board chairman, Michael Sly explained: "NFU Sugar has maintained for some time that the IHHS has focused on cost reduction at the expense of value to the industry.
“Talking with growers there are plenty of examples of fragmentation in the most recent campaign, which not only goes against the core aims of the Scheme, but has been a real financial and logistical burden.
“To remain competitive in the post-quota world, our industry must focus on maximising yield potential from farm to factory.
“I am pleased that British Sugar has committed both to implementing the ’Douglas’ recommendations, and to work with NFU Sugar to make further changes necessary for it to operate against the agreed principles.
Mr Sly added: “Only by doing both of these things can we ensure that the IHHS will be fit for the future."
