NFU Sugar has said it is 'outraged' after British Sugar contacted its 2,300 sugar beet growers with details of its contract offer for the 2024-25 growing season.
Michael Sly, NFU sugar chair, to all beet growers earlier today, said: "We are outraged that British Sugar contacted all growers earlier today and provided growers with a document which asserts to contain details of the 2024/25 Sugar Beet Contract Offer.
Outraged
"NFU Sugar has not agreed this offer, leaving the validity of any contracts made in relation to this offer in doubt.
"Active negotiations are still underway. Further updates will be issued as a matter of urgency."
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Dan Green, British Sugar agriculture director, said it had written to growers with the details of a core price contract for the 2024/25 sugar beet crop of £38 per tonne.
"As well as a high fixed price element, we have built in a mechanism which allows us to pay a market-linked bonus and share any possible upside if sugar prices remain high. This would deliver over £40/t in today's sugar market," he said.
He added there was a yield protection product to mitigate against risk (£1/t), a 20 per cent cash advance to ease cashflow in the middle of the year and a late delivery allowance to growers who choose to deliver after Christmas.
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"British Sugar will also continue to pay for frost insurance, at no extra cost to our growers - as we found out in 2022/23, this can be critical in the most severe situations," he added.
"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. We will continue to work through the negotiation and dispute resolution process with them.
No agreement
"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.
"We are confident that this offer is extremely competitive, making beet the most profitable crop on farm and will ensure it remains an attractive crop for growers across the East and East Midlands."
