Major sugar beet contractor and haulier M&J Haulage Ltd has gone into administration, with NFU Sugar labelling the business as a 'significant contractor'.
The Lincolnshire company, which harvests and hauls sugar beet on behalf of British Sugar, could heavily impact growers.
NFU sugar board chairman Michael Sly said the contractor was a 'pioneer' in the industry.
The company operates up to 20 lorries, each carrying 4 or 5 loads or 3000 tons a day.
KPMG were appointed administrators on Thursday (12 October).
It's website states: "M&J Haulage are the complete sugar beet handling company, lifting and transporting beet from Lincolnshire and neighbouring counties into Newark Sugar Beet factory.
"We have developed over recent years the combinable crop contracting / farming side of the business. We operate a full range of farm and haulage equipment capable of all required arable operations.
"As the peak of the sugar beet work load is October to April each year we have surplus labour and machinery capacity available for the arable harvest and drilling period from July to October.
"We also have sufficient capacity to cover the spring workload and the fertilising / spraying requirement.
"Our experienced team and wide range of high output equipment is key to us providing timely field operations."
M&J Haulage was founded in 1998 by Mark Popplewell.