The NFU has submitted its proposals for the 2010 beet contract to British Sugar calling for a price of £34.50/tonne.
The NFU’s proposals, borne out of consultation with growers, focus on what is needed to change attitudes and trigger investment. The proposals look at ways of simplifying the beet contract and how the industry can work together on initiatives that help both growers and the processor.
The new contract is also designed to bring about investment and confidence in the sector. However the NFU believes this comprehensive approach must include a beet price that demonstrates a positive change of attitude towards the crop.
NFU Sugar chairman William Martin said: “Growers have been telling us what they need and we have listened. There are things we can do to make the current contract better but it still boils down to price.
“The best way to signal positive change and to get growers thinking long term about beet is by paying the right price.”
The NFU has also called for proper compensation for the risks and losses associated with longer campaigns currently incurred by growers and incentives to encourage growers to deliver the whole crop to the factory.
Discussions are underway between British Sugar and NFU and there is consensus on the need for stability and investment in the sector.
Commenting on whether a price model could hold the answer, Mr Martin said:
“We’re happy to look at a formula to generate the beet price but I am also very aware of growers’ scepticism around price models. Growers don’t want a complicated formula that merely looks at their cost of production and ignores other things. However a price is arrived at it must be high enough for growers to want to invest.”
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