Sugar beet growers in the region have been offered their new sugar beet contract terms for the coming year.
British Sugar and NFU Sugar have again agreed to an offer of a single year term or three year term, each with market-linked bonuses.
The 2018 contract offers a beet price of £22,50 per tonne guaranteed minimum, plus a market bonus of a 10 per cent share of the sugar market price should it go above 475 euros per tonne.
The three year contract bonus offers a 25 per cent share of prices, again above 475 euros per tonne.
The bonus will continue to be linked to the average EU market price for white sugar as published by the EU Commission on a monthly basis each marketing year.
Colm McKay, British Sugar’s Agriculture Director, said: “We’re pleased to have reached this agreement with NFU Sugar and believe it will continue to build on the firm foundations of our home grown sugar industry, We are very proud of the relationship we have with each of our growers and look forward to continuing to grow the success story that is the beet sugar industry in the UK.”
NFU Sugar Chairman, Michael Sly, said: “We are delighted to have reached a successful conclusion with British Sugar on the contract terms for sugar beet next year. The agreement offers growers a range of options which they can tailor to suit their business needs and their appetite for risk. It provides some certainty in an uncertain world and secures a bright future for the UK sugar beet growers.”
Growers should receive their contract offers on-line or in the post by mid August.
This year’s offer follows ground breaking changes in 2017 following the end of quotas in October 2017.
The contract enables farmers to chose any combination of the one or three year contract and bonus paytments would be made at the end of the marketing year on contracted tonnage delivered during the annual campaign.
This coming year an expected 3,000 growers will supply beet.