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.