2018 sugar beet contract offers announced

Sugar Beet Blog Pic_29877

Today, British Sugar and NFU Sugar are pleased to announce their agreement on sugar beet contract terms for 2018/19. After the ground breaking deal in 2017, this year the new beet contract will continue to offer both one year and three year contracts, each with market-linked bonus elements.

Colm McKay, British Sugar’s Agriculture Director, said: “We’re pleased to have reached this agreement with NFU Sugar and believe it will continue to build on the firm foundations of our home-grown sugar industry. We’re very proud of the relationship we have with each of our growers and look forward to continuing to grow the success story that is the beet sugar industry in the UK.”

NFU Sugar Chairman Michael Sly said: “We are delighted to have reached a successful conclusion with British Sugar on the contract terms for sugar beet for next year. This agreement offers growers a range of options which they can tailor to suit their business needs and their appetite for risk. It provides some certainty in an uncertain world and secures a bright future for the UK sugar beet growers.”

The 2018 contract offers agreed are:

  • One year contract, beet price: £22.50/t guaranteed minimum, plus market bonus
  • Three year contract, beet price: £22.50/t guaranteed minimum, plus market bonus for each of the 2018, 2019 and 2020 crops

The terms of the market-linked bonus remain the same as those agreed last year:

  • One year contract market linked bonus: 10% share of the sugar market price above €475/tonne
  • Three year contract market linked bonus: 25% share of the sugar market price above €475/tonne
  • The bonus will continue to be linked to the average EU market price for white sugar as published by the EU Commission on a monthly basis each marketing year

British Sugar and NFU Sugar remain committed to working closely together to develop strong relationships and to ensure a competitive, successful sugar beet industry that can continue to grow.

Growers can expect to receive their contract offers on-line or in the post by mid-August.

Last edited on: 14:07:2017

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