The agreement gives sugar beet growers a choice of fixed, market-linked and index-linked contract options
Sugar beet growers will be offered a fixed price of ÂŁ28.50/t for the 2027/28 crop after NFU Sugar and British Sugar finally reached agreement following protracted negotiations.
The deal brings an end to a lengthy process between the two organisations and gives growers a range of pricing options as they plan for the next crop.
Under the agreement, growers can take a one-year fixed-price contract at ÂŁ28.50/t for up to 50% of their contract.
They can also choose a one-year contract with a guaranteed base price of ÂŁ25.50/t, plus a Market-linked Bonus, for up to 100% of the contract.
An Index-linked contract will be available for up to 50% of the contract, while Yield Protection can be added at a ÂŁ0.90/t reduction to the fixed and Market-linked Bonus prices.
The package also includes a Transport Allowance covering journeys of up to 60 miles for all factories, rising to 75 miles for Cantley growers.
An interest-free Cash Advance, Late Delivery Allowance and complimentary Frost Insurance are also included among the options.
The agreement follows a difficult negotiating period, with NFU Sugar previously prepared to pursue arbitration if necessary.
NFU Sugar Board chair Kit Papworth said the organisation believed the final agreement struck a fair balance for growers.
“We believe this represents a fair deal, providing options for growers with different risk appetites,” he said.
Papworth also made clear that the process had taken its toll, describing it as “a long, and expensive, process” and saying he hoped it would not have to be repeated in future years.
He added that NFU Sugar would continue to act in growers’ interests, “including going through the arbitration process if necessary”.
British Sugar managing director Keith Packer also welcomed the agreement, while acknowledging the uncertainty caused by the delay.
“I am pleased we have managed to come to a negotiated agreement with NFU Sugar,” he said.
Packer said the sugar industry was continuing to face challenging market conditions and that “nobody welcomed this long delay to a contract announcement and the uncertainty it brought”.
He said the agreement should now give growers greater clarity during a volatile period for farm businesses.
British Sugar said the contract also gives growers access to options not typically available with other crops, including the interest-free Cash Advance and the Market-linked Bonus.
Packer said the bonus would allow growers to benefit from “a share of the upside when the market is favourable”.