Contract agreed for sugar beet crop in 2026/27
15th August 2025
NFU Sugar and British Sugar have concluded negotiations and agreed a deal for the 2026/27 sugar beet contract.
NFU Sugar board chair Kit Papworth said the deal offers growers choices to suit individual business circumstances, and balances challenging sugar market conditions with the increasing costs and risks of growing sugar beet in the UK.
The contract options include a one-year fixed price contract at £30/t, for up to 65% of the contract; or a one-year contract with a guaranteed base price of £25/t, plus a market-linked bonus for up to 100% of the contract.
There is also the option of an index-linked contract (previously called ‘futures-linked’) for up to 50% of the contract.
Other options include:
- Yield Protection contract at a £1/t reduction on the fixed and market-linked bonus contract prices
- Transport allowance up to 60 miles for all factories
- One year contract holiday for up to 750kt CTE, on first come, first served basis
- Plus, an interest-free cash advance option, a late delivery payment and complimentary frost insurance.
Keith Packer, managing director of British Sugar, said: “As the sugar industry continues to face challenging market conditions, I am pleased that we’ve agreed a deal for all, reflecting the current situation.
“This year’s contract is the product of many months of hard work with NFU Sugar, giving growers much-needed security and certainty at what is a volatile time for farm businesses.
“We’re offering valuable options which include an interest-free cash advance, a market-linked bonus for a share of the upside when the market is favourable, and an index-linked contract for those with a greater appetite for risk and reward.”
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2025/26 contract
The previous contract for 2025/26 offered growers the option of a one-year fixed price contract at £33.00/t, for up to 70% of the contract; or a one-year contract with a guaranteed base price of £30.70/t plus an improved market-linked bonus.
Relaxed performance rules were also offered for one year only, to ensure growers retained their Contract Tonnage Entitlement (CTE) in 2026 if they delivered at least 70% of their contracted tonnage in 2025/26.
The relaxation was primarily due to the threat of virus yellows disease and the anticipated unavailability of Cruiser SB.
Read more sugar beet news.
