Arable News

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NFU and British Sugar agree price increase for 2014/15 beet campaign

The NFU and British Sugar have announced their agreement for aprice increase for the 2014/15 beet campaign.

Following months of detailed discussions, the price for the 2014crop, which would have been set at 27.67/t under the IPA model, has beenagreed at a higher level of 31.67/t.

NFU sugar board chairman William Martin said: We are pleased tohave reached a successful agreement with British Sugar on the 2014/15 sugarbeet price.

Over the past two years the NFU has highlighted problems with thecurrent price model which has not been flexible enough to cope with changes incommodity markets. It also does not recognise the need for a higher marginrelative to other crops, due to the increased risks arising from long anddifficult campaigns, and the consequent effects on other crops in the rotation.

Through our detailed negotiations held with British Sugar sincethe beginning of this year there has been acknowledgment and acceptance of theneed for a new way forward, resulting in the agreement of the 2014/15 price inorder to address the concerns of farmers and maintain beets place in theirrotations. The package also recognises the difficult growing seasonsexperienced in recent years and grower concerns relating to longer campaigns.We have also agreed to set up joint working groups to explore ways of ensuringthat the beet contract meets the needs of the industry in future.

As well as the 14 per cent uplift in the beet price we have alsoagreed a further enhancement to the Late Delivery Allowance to help addressadditional risks for the second half of the campaign: a daily increase to thebase price from December 26 will mean growers delivering on February 28 willreceive 35 per adjusted tonne.

We hope that with the price now agreed, growers will be able tocomplete cropping plans for the 2014 harvest.




  • Written by: Farmers Guide
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