British Sugar has sparked "outrage" from farming leaders after making a contract offer to beet growers while protracted negotiations over next year's crop prices are still continuing.
Despite months of talks with the National Farmers' Union's sugar board (NFU Sugar), a final contract deal has not yet been agreed for the 2024/25 season.
But the processor has written directly to the 2,300 growers which supply sugar beet to its four factories at Cantley and Wissington in Norfolk, Bury St Edmunds in Suffolk, and Newark in Nottinghamshire.
It has offered them the choice "to contract with us now" at a "competitive" core price of £38 per tonne - a slight improvement on the guaranteed minimum of £37.50/t which was offered in September, when the company also wrote to growers mid-negotiations.
East Anglian farmers said the drop from this year's price of £40/t did not represent a fair balance of risk and reward, given the high world sugar prices.
But the latest offer provoked an urgent message to growers from NFU Sugar chairman Michael Sly, saying: "We are outraged that British Sugar contacted all growers and provided growers with a document which asserts to contain details of the 2024/25 Sugar Beet Contract Offer.
"NFU Sugar has not agreed this offer, leaving the validity of any contracts made in relation to this offer in doubt. Active negotiations are still under way."
British Sugar said the offer followed "significant pressure from growers" seeking financial certainty, and includes a market-linked bonus so growers can "share any possible upside if sugar prices remain high" - which the firm says would deliver over £40/t in today’s sugar market.
Dan Green, British Sugar's agriculture director, said: "I am sorry to say that, despite our best endeavours and months of negotiation, we have not yet been able to agree a price and full terms and conditions with NFU Sugar. We will continue to work through the negotiation and dispute resolution process with them.
"However, we know that as we are now at the start of November, growers need the financial security of a contract and the certainty of a guaranteed price as soon as possible.
“We are confident that this offer is extremely competitive, making beet the most profitable crop on farm and will ensure it remains an attractive crop for growers across the east."
The offer also includes a risk-reducing "yield protection" option at a lower core price of £37/t, a 20pc cash advance to ease cashflow in the middle of the year, and a late delivery allowance to growers who deliver after Christmas.
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