NFU Sugar and British Sugar agree contract for 2027/28 sugar beet crop
NFU Sugar and British Sugar have concluded negotiations and agreed a deal for the 2027/28 sugar beet contract.
What’s new on this page? NFU Senior Commercial and Market Analyst James Thompson takes sugar growers through the 2027/28 contract – watch the webinar now
At the beginning of August, NFU Sugar and British Sugar had been unable to reach agreement through the normal negotiating framework.
As a result, the dispute was referred to independent arbitration, although discussions continued and a negotiated settlement was ultimately reached before an arbitration ruling was required.
Options for ‘different risk appetites’
Responding to the news, NFU Sugar Board Chair Kit Papworth said: “The NFU Sugar board is pleased to have finally concluded the contract agreement on behalf of our growers. We believe this represents a fair deal, providing options for growers with different risk appetites.
“This has been a long, and expensive, process which I hope in future years won’t need to be repeated However, as the representative body for our growers, NFU Sugar will always do the right thing by them, including going through the arbitration process if necessary.”
The offer
The contract options include:
- A one-year fixed price contract at £28.50/t, for up to 50% of the contract.
- A one-year contract with a guaranteed base price of £25.50/t, plus a market-linked bonus for up to 100% of the contract.
- An index-linked contract, for up to 50% of the contract.
The market-linked bonus will be triggered when British Sugar’s average ex-works white sugar selling price exceeds €560/t, growers will receive 25% of the value achieved above the trigger.
The index-linked contract will continue to derive its value from the No. 11 raw sugar futures contract and the relevant sterling-dollar exchange rate. The contract will be calibrated to begin at £25.50/t.
Growers can choose to split their tonnage between any of these contract options.
The agreement also includes:
- Yield protection at a £0.9/t reduction on the fixed and market-linked bonus contract prices.
- Transport allowance paid up to 60 miles for all factories, and up to 75 miles for ex-Cantley growers.
- Plus, an interest-free cash advance option, a late delivery allowance, and complimentary frost insurance.
More detail is available on the specific contract options in the contracting information from British Sugar.
If you have any questions, you can contact your agriculture Manager or the British Sugar Services team on 0800 090 2376 or email [email protected]. You can contact NFU Sugar at [email protected] or call the NFU Sugar helpline on 0370 066 1974.
Watch our 2027/28 beet contract explainer
NFU Senior Commercial and Market Analyst James Thompson presents a webinar taking sugar growers through the 2027/28 contract.
