NFU Council: Sugar update
Kit Papworth
Norfolk | NFU Sugar Board chair | BBRO Executive Board | Sustainability
At the close of NFU Council, NFU Sugar Board Chair Kit Papworth recaps what was discussed.
I explore the challenging growing season, the proposed Cantley factory closure, the 2027/28 sugar beet contract and board elections.
Challenging growing season
The UK has faced a very challenging growing season. The drought, coupled with virus yellows, beet moth, and beet army worm, has hit many growers hard. So, we’re bracing ourselves for an average yield this campaign in the mid-60s t/ha, compared to a five-year average of around 75t/ha.
The UK is not alone, with challenging growing conditions across Europe too. France and Germany, the EU’s largest sugar beet producers, are forecasting more than 10% lower yields this year than their five-year averages.
Campaign started on 28 September, and as of today three factories are open – Wissington, Bury and Newark.
At the start of campaign, NFU Sugar have also welcomed back our team of seasonal staff who are present in the beet intake facilities at each of the factories to oversee weighing, sampling and testing of loads, ensuring agreed protocols and procedures are followed.
NFU Sugar has representatives in the factories to ensure growers have confidence that what they are being paid by British Sugar is accurate.
If you would like to see this process in person, the beet reception programme manager hosts tarehouse tours during the sugar beet campaign – book your place now.
Proposed Cantley factory closure
On 21 July, British Sugar announced proposals to close its Cantley factory in Norfolk, after the 2026/27 campaign.
NFU Sugar immediately expressed extreme disappointment at British Sugar’s proposals and called for long-term assurances to protect growers and the future of the UK sugar beet sector.
We believe this reflects overcapacity across Europe, following deregulation in 2017, as well as UK trade policy allowing greater quantities of duty-free sugar to be imported into the UK under the ATQ (Autonomous Tariff Quota).
We are particularly concerned that this factory closure means British Sugar will reduce its commitment to domestically grown sugar beet, as British Sugar’s press release specifies ‘ceasing beet processing’ at Cantley. This leaves open the possibility that British Sugar is planning to continue operating the sugar refining part of Cantley but import raw cane sugar under the ATQ to refine into sucrose.
2027/28 contract
Negotiations for the 2027/28 sugar beet contract finally concluded in October.
This was later than previous years as the arbitration process – outlined in the IPA (Inter-Professional Agreement) – was triggered by British Sugar in early August.
Negotiations continued in parallel, resulting in an agreement before the arbitration hearing.
The agreement includes:
- 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.
Growers can choose to split their tonnage between these options depending on their appetite for risk.
By the next NFU Council meeting I hope to have a clearer picture of the contracted area for 2027/28.
Board elections
Finally, the sugar board election process has been completed for another year.
We had three positions up for election, each for a three-year term beginning in March 2027.
John Scott and Tim Beaver have both stepped down this year and I would like to thank them for their contribution to NFU Sugar.
Simon Smith, my current Vice-chair, has been re-elected for a further 3-year term, having served since 2015. Sam Godfrey and Jordan Allen will also return to the board.
Sam previously served between 2017-2023, while Jordan was a co-optee on the board last year after taking part in the Sugar Industry Programme.
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