Beet growers to lock in prices two seasons ahead under new contract
UK sugar beet growers will soon be able to lock in prices two seasons ahead under a new forward index-linked contract designed to improve price certainty and manage market volatility.
The pilot scheme will allow growers to contract part of their 2027/28 crop in advance of annual price negotiations, offering greater flexibility in how beet is marketed and helping businesses plan margins further ahead.
The move has been developed jointly by NFU Sugar, British Sugar and agri-commodity specialists Czarnikow.
NFU Sugar board chair Kit Papworth said the pilot brings sugar beet in line with other major farm commodities.
“Farmers are used to being able to forward sell other commodities and this pilot allows growers to do the same for sugar beet,” he said.
He acknowledged that world sugar prices are currently subdued, but warned the market remains unpredictable.
“While world prices are low now, the market is highly volatile, and this scheme will allow growers to lock in prices if market conditions become attractive.”
Under the current one-year index-linked contract, growers can price beet against global markets, but must commit tonnage well before being able to secure a price and are limited to pricing only one season ahead.
The new forward index-linked option is designed to give growers visibility of a forward market price and the freedom to commit only when they choose to price their beet.
If prices are unattractive, there is no obligation to sell.
Dan Green, agriculture director at British Sugar, said: “We’re pleased to launch this pilot contract option. It gives greater choice and flexibility to those growers wishing to price some of their tonnage further ahead.”
Pricing will be linked to global sugar futures markets and sterling exchange rates, giving growers a transparent view of forward values similar to wheat and other traded crops.
Andrew Charlton, head of Europe at Czarnikow, said: “This continued innovation provides UK sugar beet growers more choice and greater forward price visibility, and we are delighted to broaden our offering to farmers through the Cz App in collaboration with the NFU and British Sugar.”
Growers will be able to monitor forward prices via the Cz App from 2 March 2026, when the pilot officially launches.
The initial tranche will allow the sale of up to 50,000 tonnes of beet drilled in spring 2027, priced against the October 2027 No.11 sugar futures contract and the December 2027 dollar-to-pound exchange market.
Further tranches are expected to be made available if uptake proves strong.
With input costs remaining elevated and global sugar markets prone to sharp swings, the ability to forward price further ahead could offer growers another tool to manage risk heading into the 2027 season.
