Defra tells British Sugar and NFU to resume contract talks

British Sugar sparked "outrage" among East Anglia's beet growers last week by making a price offer directly to farmers while active negotiations were still under way with industry representatives from the union's sugar board (NFU Sugar).

NFU president Minette Batters criticised the processor's "deliberate circumvention of the statutory process" and demanded government intervention to "determine the terms for the supply of sugar beet for the 2024/25 contract year".

Now Defra has waded in on the issue, urging both parties to follow the "well-established process in place to agree the sugar beet price."

A department spokesman said: "We are committed to promoting fairness across the food supply chain, with risk and reward being properly shared. That includes seeing a price agreed for sugar beet that benefits both growers and processors, in the context of the global market.

"There is a well-established process in place to agree the sugar beet price; designed to be independent between both parties, with government only acting as final arbitrator at the end of the process should no agreement be reached.

"It is very important that all parties involved now continue to follow that process and reach a mutually acceptable outcome.

NFU Sugar welcomed the "clear direction from government", adding: "NFU Sugar is ready to resume the negotiation process that British Sugar bypassed last week.

"But that price-setting process cannot function effectively whilst British Sugar is, at the same time, making unilateral offers to beet growers outside of it."

Dan Green, agriculture director for British Sugar, also welcomed the Defra statement.

He said: "As communicated when we launched our offer, British Sugar remains fully committed to getting a price agreed with the NFU for the 2024/25 beet price negotiations.

“We look forward to engaging with the NFU and following the negotiation and dispute process in line with the Inter Professional Agreement."