British Sugar announces outcome of negotiations on sugar beet price

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British Sugar has announced that an agreement has been reached between NFU Sugar and British Sugar on the terms of the sugar beet contract offer for 2016/17. The key elements are summarised below:

Price – 2016/17

§ Contract beet price (CTE) – £20.30 per tonne

§ Industrial beet price (ICE) – £20.30 per tonne

§ Surplus beet price – Not confirmed, announcement to be later in the year.

Volume – 2016/17

§ There will be no compulsory cut in CTE and ICE

§ A grower may offer to grow whatever proportion of their CTE and ICE they wish, from 0% to 100%.

§ Growers will retain their right to offer to grow in 2017/18 regardless of what they have chosen to grow in 2016/17.

§ The contract performance rules will return to a two year average of 95% over 2015/16 and 2016/17. These rules relate to the tonnage contracted to grow with British Sugar in those years.

Transport – 2016/17

§ The transport allowance will be calculated from the Industry Haulage Scheme costs, including cleaning and loading.

§ There will be no additional payment in 2016/17 for those in the Industry Haulage Scheme.

On reaching agreement, Colm McKay, British Sugar’s Agriculture Director said: “We believe our agreement sets a firm foundation for the future and demonstrates a commitment to work together to ensure our industry can compete in an increasingly competitive market place.”

Growers can expect to receive their contract offers on-line or by post during the week commencing 6th July.

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