NFU Sugar and British Sugar have concluded negotiations and agreed a deal for the 2026/27 sugar beet contract.
In what British Sugar describes as a ‘challenging market’, the contract options include:
- A one-year fixed price contract at £30/t, for up to 65% of the contract
- A one-year contract with a guaranteed base price of £25/t, plus a market-linked bonus for up to 100% of the contract
- An Index-linked contract (previously called ‘futures-linked’) for up to 50% of the contract
- 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
- An interest-free cash advance option, a late delivery payment and complimentary frost insurance
Keith Packer, Managing Director, British Sugar, added: “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.”
Earlier this year, the market traded at a four-year low of under 16 cents/lb in New York and at the time trader Paul Harper described the market as ‘bearish’ and saw little immediate prospect of prices improving.
NFU Sugar board chair Kit Papworth said: “I am pleased we have managed to come to a negotiated agreement with British Sugar for the 2026/27 sugar beet contract.
“This deal offers growers choices to suit individual business circumstances and balances challenging sugar market conditions and the increasing costs and risks of growing sugar beet here in the UK.”
