Arable News

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Key elements of the 2015 sugar beet crop agreement – NFU

2015/16contract beet price (CTE) – The CTE beet price for 2015/16 has been fixed at24 per tonne. This price shouldprovide a good gross margin for those achieving an average yield, in comparisonwith alternative crops at current prices.

2015/16industrial beet price – The ICE beet price for 2015/16 has been fixed at 24per tonne. Growers who hold an existingICE contract will have that entitlement rolled over for 2015. The ICE pricewill continue to be set annually at the same time as CTE.

2015/16surplus beet price – The pricefor surplus beet will not be announced until nearer to sowing however, to enablegrowers to plan their contract area appropriately we would like to highlightthat it is expected, due to the current levels of excess stock, the surplusbeet price will be significantly below the price levels experienced in recentseasons.

Enhanced TransportAllowance

The transport allowance has been reviewedfollowing the end of the 2011 IPA agreement. In recognition of the changes tothe regime, the previous Euro linked allowance has been scrapped and anincreased allowance linked to the costs of the Industry Haulage Scheme will bepaid.

This will include an additional fixed amountfor both cleaning and loading. As a result of these changes it is estimated the transport allowance for 2015 willbe approximately 1.50/tonne higher than the allowance in 2014.

IndustryHaulage Scheme Incentive payment – The NFU and British Sugar are committed to continuingto promote the gains in efficiency that have been achieved by the currentIndustry Transport Scheme. Tothat end, growers that have their beet delivered using the Industry Scheme in2015 will receive an additional payment at the end of the campaign of 1/tonneof adjusted beet.

ContractedTonnage / Area

Due to the high levels of sugar stockreferenced earlier, it will not be possible to continue to contract for thesame area of crop in 2015. In order to facilitate a reduction in planned area,four measures have been agreed:

1. Performancerules – to help growers minimise producing excess surplus beet,there will be a relaxation in the contract performance rules so that for2015/16, growers will only need to deliver a 2 year average of 90% of their contract tonnage over the2014 and 2015 crops (rather than 95%) to retain their fullentitlement for 2016.

2.Contract Holiday it is recognised that some growers may notwish to grow their full entitlement. For those that wish not to grow eitherpart or all of their entitlement in 2015, but still retain their entitlementfor 2016, a one-off contract holiday is being made available. This will onlybe available for a limited tonnage of up to 20% of the national crop and the offer will be closed by 26th August.

3. Possibletemporary contract cut if following the return of contracts,the area is still over-subscribed, it may be necessary to implement a one-off acrossthe board temporary cut in contract for 2015. Any required contract cuts willbe applied to CTE and ICE in equal proportions. Growers will be notified of anyrequirement for an across the board contract cut for 2015 by mid-September2014.

4. BritishSugars own beet growing. In the light of the reduced demandfor sugar, British Sugar has agreed to reduce the area of beet it grows by 50%in 2015. If there is a contract cut across the board, the British Sugar tonnagewill be further reduced in the same proportion.

  • Written by: Farmers Guide
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