Defra calls for 'mutually acceptable outcome' amid sugar beet pricing row

The government has urged British Sugar and NFU Sugar to reach a 'mutually acceptable outcome' amid the ongoing sugar beet pricing row.

NFU Sugar had asked Defra for 'immediate interventions' after British Sugar contacted growers with details of the 2024-2025 contract offer despite negotiations continuing between the two.

NFU Sugar, the growers’ representative body, said it was 'outraged' that the processor had made the contract offer despite no agreement to it.

Now Defra has waded in on the issue, highlighting that there is a "well-established process in place to agree the sugar beet price.”

"We are committed to promoting fairness across the food supply chain, with risk and reward being properly shared," a department spokesperson said.

"That includes seeing a price agreed for sugar beet that benefits both growers and processors, in the context of the global market."

The spokesperson added: “It is very important that all parties involved now continue to follow that process and reach a mutually acceptable outcome.”

NFU Sugar said it welcomed the 'clear direction' from the government that negotiations with British Sugar 'should resume'.

Government’s direction 'could not be clearer', NFU Sugar said, adding that it "is ready to resume the negotiation process that British Sugar bypassed last week".

"But that price-setting process cannot function effectively whilst British Sugar is, at the same time, making unilateral offers to beet growers outside of it," the body said.

"We expect British Sugar to adhere to government’s direction and return to the negotiating table in good faith."

On 1 November, growers were provided with a document which contained details of the offer against the backdrop of talks over price and full terms and conditions.

The offer, made to 2,300 growers, detailed a sugar beet price worth £38 per tonne for the 2024-25 contract year.

Dan Green, British Sugar agriculture director, said the offer was 'extremely competitive' despite the dispute with NFU Sugar.

“I am sorry to say that, despite our best endeavours and months of negotiation, we have not yet been able to agree a price and full terms and conditions with NFU Sugar.

"However, we know that as we are now at the start of November, growers need the financial security of a contract and the certainty of a guaranteed price as soon as possible."

But NFU Sugar said the 'aggressive action' was undertaken in the hope that growers would accept a contract that 'gives them significantly less value than they should receive given anticipated market conditions'.

The growers' representative body said it was 'fighting to deliver a package that has much greater value' than British Sugar's offer.

It added that British Sugar was due to make 'higher profits' from the 'extremely high' forecast global sugar prices in the 2024 contract period.