British Sugar has announced that an agreement has been reached between NFU Sugar and British Sugar on the terms of the sugar beet contract offer for 2016/17. The key elements are summarised below:
Price – 2016/17
Contract beet price (CTE): £20.30/t
Industrial beet price (ICE): £20.30/t
Surplus beet price: Not confirmed, announcement to be later in the year.
Volume – 2016/17
There will be no compulsory cut in CTE and ICE.
A grower may offer to grow whatever proportion of their CTE and ICE they wish, from 0–100%.
Growers will retain their right to offer to grow in 2017/18 regardless of what they have chosen to grow in 2016/17.
The contract performance rules will return to a two year average of 95% over 2015/16 and 2016/17. These rules relate to the tonnage contracted to grow with British Sugar in those years.
Transport – 2016/17
The transport allowance will be calculated from the Industry Haulage Scheme costs, including cleaning and loading.
There will be no additional payment in 2016/17 for those in the Industry Haulage Scheme.
On reaching agreement, Colm McKay, British Sugar’s Agriculture Director said: “We believe our agreement sets a firm foundation for the future and demonstrates a commitment to work together to ensure our industry can compete in an increasingly competitive market place.”
Growers can expect to receive their contract offers on-line or by post during the week commencing 6th July, said British Sugar.
NFU sugar board chairman William Martin said: “Our industry continues to face significant challenges. Low world prices and the approaching end of quotas are resulting in difficult market conditions.
“Both the NFU and British Sugar are confident that, despite these challenges, we will secure the long-term future of the industry by continuing to work together.
“The package we have negotiated should enable beet to compete in rotations on farm and builds for a successful future for both growers and the UK sugar beet industry.”