British Sugar's beet pricing for 2008 is insulting, says analyst

British Sugar's pricing structure for the 2008 sugar beet crop was "insulting" and growers should consider not growing the crop, particularly if they average 62.5t/ha (25t/acre) or less, the Norfolk Farming Conference heard.

Delegates were also told a further 6-10% cut in quota might be needed to hit the European Commission's 6m tonne reduction in sugar production (see p56).

Net farm margins presented by Charles Whittaker, agricultural business manager for Brown & Co, suggested sugar beet would be the poorest performing crop in many rotations in 2008. "It is pretty obvious that the beet pricing structure for 2008 doesn't compete. In fact it is inappropriate why are we talking about £21/t for next year, when we already have £24/t in place for 2009? It's insulting."

Growers who consistently averaged less than 62.5t/ha (25t/acre) should be letting someone else grow the crop, or stopping altogether, even at £24/t, he said. "Yes, commodity prices [for other crops] are hugely variable, but beet is consistently poor.

"I vote 'no' to growing the crop at £21/t." He told Farmers Weekly he knew of some individual growers that British Sugar had accepted seed back from because their plans had altered. "There is an opportunity for growers to do that. British Sugar might respond."

But William Martin, vice-chairman of the NFU's sugar board, didn't believe there would be any increase in prices for 2008, although he recognised almost all growers were not satisfied.