NFU Sugar has written to Defra asking 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.
On 1 November, growers were provided with a document which contained details of offer against the backdrop of ongoing talks over price and full terms and conditions.
The offer, made to 2,300 growers, details a sugar beet price worth £38 per tonne for the 2024-25 contract year.
But NFU Sugar said the 'aggressive action' was undertaken in the hope that individual 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.
NFU Sugar Board chair, Michael Sly said: “We are outraged that British Sugar provided growers with a document which asserts to contain details of the 2024/25 sugar beet contract offer.
"NFU Sugar has been contacted by many growers in the last 48 hours who have raised various questions and concerns about British Sugar’s communication.
"NFU Sugar has not agreed to the offer... to that end, it has written urgently to the farming minister asking for immediate interventions by Defra."
These include a statement to the industry ahead of 6 November confirming both the NFU’s role under the CMO Regulation and the invalidity of contracts formed on the basis of British Sugar's unilateral contract offer.
The body has also urged the government for amendments to the CMO Regulation to 'avoid a repeat of the crisis in which we now find ourselves'.
Defra must also exercise statutory powers under section 69 of the the Food Ac to determine the terms for the supply of sugar beet for the 2024/25 contract year, NFU Sugar said.
Dan Green, British Sugar agriculture director, said the offer was 'extremely competitive' despite the dispute resolution process 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."
