Additional sugar beet tonnes available in 2022 at fixed £27/t
8th November 2021
British Sugar is inviting sugar beet growers to produce additional tonnes in 2022 at a fixed price of £27/t; a 33% increase on the previous year’s contract price. Farmers interested in growing beet are also welcome to apply for their own contract or explore other growing options on offer.
The 2022/23 one-year sugar beet contract will pay a guaranteed fixed price of £27/t on a zero crown basis. For growers acclimatising to decades of crown tare deductions and a previous sugar scale, £27/t is the equivalent of £27.92/t on average where the previous crown tare deduction and sugar scale terms applied.
The contract price rise acknowledges increases in input costs and inflation in alternative crop prices, as well as providing growers with a share of the recent improvements in sugar pricing.
Growers with tonnage on the existing 2020/21 and 2021/22 multi-year contracts have the option to upgrade from their existing £21.18/t price to a guaranteed fixed £25/t, subject to committing to an additional contract year. The £25/t zero crown is the equivalent of £25.85/t on average where the previous crown tare deduction and sugar scale terms applied.
All contract options for 2022 are guaranteed fixed prices with no market-linked bonus.
Growers can apply for additional tonnes on the 2022/23 one-year contract, on the higher-priced multi-year upgrades, and on the Futures-linked variable price contract.
A Local Premium for local growers
A Local Premium introduced by British Sugar for the 2022/23 crop pays an additional £2/t on top of the base price for growers up to nine miles of their contracted factory, decreasing on a linear scale by 10p/t per mile.
For example, a grower at 15 miles will receive an additional £1.40/t. That’s a potential income of £28.40/t with tonnage on the 2022 one-year contract, and over £29/t with the average Late Delivery Allowance.
Futures-linked variable price contract
British Sugar has agreed to a Futures-linked variable priced contract, providing growers with the ability to make dynamic pricing decisions for a proportion of their contract. The beet price under this contract fluctuates with market movements. All growers – existing and new – are eligible for this contract and have the option to allocated up to 10% of their total CTE including any additional tonnes requested.
Virus Yellows Fund
British Sugar’s £12m Virus Yellows Fund continues in 2022 with growers compensated for yield losses due to Virus Yellows. Industry-wide efforts continue with advocacy for plant protection products and future breeding techniques.
Late Delivery Allowance
British Sugar pays a Late Delivery Allowance to growers who choose to deliver beet after Christmas, through to the end of campaign. The Late Delivery Allowance is seen by many growers as a means of boosting their income, as this allowance tops-up the beet price.
The Late Delivery Allowance provides an additional £0.65/t, on average, starting from £0.04/t on 26th December and increasing until campaign finishes e.g. £4.20/t on 31st March.
2022 Contracting is now open
Growers are invited to submit their Contract Offer by 25th November. This date is especially important for growers wishing to allocate tonnage to the Futures-linked variable price contract, as that contract option will not be available after that date.
New growers and former growers welcome
Farmers who have never grown sugar beet before, as well as farmers who used to grow sugar beet, are welcome to apply for their own contract, or discover other growing options on offer. Call British Sugar Grower Services on freephone 0800 090 2376.
2022/23 contract summary
- One-year contract: £27/t
- Upgrade existing multi-year contracts: £25/t
- Local premium up to 28 miles
- Futures-linked variable price contract
- £12m Virus Yellows Fund
- Late Delivery Allowance
Your spring-sown break crop solution
- Flexible beet delivery window helps with planning of following crop
- Insurance for loss of crop due to frost
- Farm Beet Delivery Service contract to clean, load, and deliver beet in lieu of Transport Allowance
- Harvesting services also available
- Industry-wide advocacy for plant protection products and future breeding techniques.