Further to its communication to growers on the 6th September, British Sugar says that the prices offered for the 2016/17 season sugar beet contract, together with surplus beet, are set to rise.
According to the processor: “The IPA terms provide for an increase in price in the event that the EU Minimum rate set in Euros exceeds the fixed price agreed of £20.30 per adjusted tonne. Following the recent weakening of Sterling, this is the case for 2016. The exact rate was dependent on the average of the September exchanged rate published by the European Central Bank, which has now been released.
“The price for this campaign is therefore £21.62 per adjusted tonne. This will be paid in full from the start of campaign as you deliver. The surplus price for 2016/17 season will be increased above the present £15.00 per adjusted tonne.
“Indications are that the majority of surplus beet delivered this year will be needed to make the national quota. If this is the case, then the price paid for part or potentially all of the surplus beet delivered will be topped up to the £21.62 CTE price. In this event, all surplus beet will receive the enhanced price as a top up after the end of the campaign. As more information about the situation becomes available we will keep you informed.”
In addition, British Sugar said that the Late Delivery Bonus rates are linked to the CTE price, so these have now been finalised and interim payments for haulage remain unaffected.
The company adds that if growers have any questions they should contact their area manager or call the If you have any questions regarding this, please call your Area Manager or the Agriculture Helpdesk on 0870 2402314 ([email protected]) for assistance.