British Sugar offers growers reduced contract price for 2024

Negotiations are ongoing between British Sugar and the National Farmers' Union (NFU) for the 2024-25 campaign, and a final deal is yet to be agreed.

But the processor wrote to growers to outline an "indicative offer" of a guaranteed minimum price of £37.50 per tonne - down from this season's £40/t, but still higher than previous years.

Agriculture director Daniel Green says the price reflects a significant fall in the high costs of inputs, such as fertiliser, which prompted a 48pc rise in contract prices last year. 

Daniel Green, agriculture director for British Sugar (Image: British Sugar)

"Despite these changes we are keeping our fixed price element as high as we can for 2024/25 because we want beet to remain a financially attractive part of your rotation," he says.

But north Norfolk farm contractor Kit Papworth, a member of the NFU sugar board, said: "We're fielding calls from a lot of angry growers.

"From our perspective, the world sugar price is at a very high level, and I think it is time to share the rewards with growers.

"Negotiations are ongoing, but a lower price than last year is not something we can contemplate."

British Sugar says although sugar prices are high, beet planted in spring 2024 is only sold as sugar between October 2024 and September 2025, and not many sales contracts have yet been agreed for that period.

"We simply can’t take all the sugar price risk in what is a very volatile market," adds Mr Green.

"So, we have designed a mechanism which allows us to pay you a market-linked bonus when pricing is agreed, and we know that we have had a reasonable crop.

"If sugar markets in 2024/25 are the same as today, we want to give you a top-up, taking the overall price of your beet crop to above £40 per tonne.

"You can also ensure a minimum guaranteed income through opting for our yield protection product, and we offer a futures-linked contract if you want more pricing risk."