Relief for Suffolk sugar beet growers as deal finally struck

British Sugar and National Farmers' Union (NFU) Sugar have agreed a fixed £40 a tonne price for the 2024/25 crop - in line with this year's deal.

And after long, protracted and at times acrimonious talks both sides have agreed to working to a shorter talks timescale in future.

Growers can pick from a range of other choices including a core price of £38 per tonne plus a market-linked bonus, a Futures-linked option, for up to 35% of their contract - and yield protection at a £1 per tonne reduction on the core or fixed contract price.

A cash advance option, late delivery allowance, local premium, and frost insurance remain the same as last year.

Both sides agreed that the lengthy negotiation process - which started in June - had "not served the industry well".

As as result, and as "part of the continued modernisation" of the industry they have agreed a shortened negotiation timeline which will deliver a final price and contract earlier in the year.  

British Sugar managing director Keith Packer said: “I am pleased that we have reached a contract offer for the 2024/25 growing season with NFU Sugar.

"We believe this offer represents great potential for growers and shows the long-term commitment British Sugar has to our homegrown sugar industry.

“This negotiation has been my first as managing director of British Sugar and I want to make sure that in the future we all do better for our growers.

"This is why it was important to agree a shorter timeline which will allow both ourselves and NFU Sugar to negotiate to a conclusion for an offer to be with growers by October 30. The changes we have made will ensure that this is in place for next year’s negotiations.

“We are now looking forward to moving on and working together on key projects around sustainability, our critical Virus Yellows Pathway and upholding a fair trade policy environment.”

Michael Sly, Chair, NFU Sugar Board, said: “I would like to thank growers for their overwhelming support of NFU Sugar in these very difficult negotiations. It should be clear to everyone that grower unity with NFU Sugar has delivered this deal.

“We will continue to work tirelessly to ensure that our industry is modernised and growers always receive a fair share of the value of the sugar that comes from their beet.”

Farmer Richard Owen, of Occold, near Eye - has yet to sign up to a contract with British Sugar for next year but said he will now after the deal was struck.

"I would not have gone against the NFU," he said. "We have to stick together really against a company like British Sugar who have a monopoly."

He expressed frustration that British Sugar didn't agree to continue at £40/t much earlier in the talks process.

"I think it's a shame it wasn't right at the start £40/t and there would not have been all this fracas with the NFU," he said.

"I have grown it for the last 30/35 years. This is the first year I haven't grown it. It was how the cropping came for the farm and also I'm not a great fan of British Sugar. 

"We are trying to go down the conservation farming way with direct drilling and sugar beet doesn't really fit into that very well.

"The trouble is it's a good-paying crop - it's just keeping in there I think by the skin of its teeth."

With wetter winters it was becoming an increasingly risky crop to grow, he said. "I know people locally who have given it up," he said.

Andrew Blenkiron, chairman of Suffolk NFU branch, said the uncertainty caused by the protracted negotiation was "no use" either for growers or British Sugar.

"It does seem that the protracted negotiations could easily have been settled a long time ago if everyone had agreed to “stand on” at least for the headline price," he said.

"We quite simply must have an answer considerably earlier in the summer next year."