The price for contract (CTE) and industrial (ICE) beet is £20.30 per tonne. The price for surplus beet has not been confirmed and will be announced later in the year.
NFU sugar board chairman William Martin said: “Our industry continues to face significant challenges. Low world prices and the approaching end of quotas are resulting in difficult market conditions.
“Both the NFU and British Sugar are confident that, despite these challenges, we will secure the long-term future of the industry by continuing to work together.”
In addition to the price announcement, growers will not be subject to a compulsory cut in CTE and ICE and instead they may offer to grow whatever proportion of their CTE and ICE they wish, from 0% to 100%. They will retain their right to grow in 2017/18 regardless of what they have chosen to grow in 2016/17. Performance rules will be set at a two year average of 95% of contracted tonnage over the years 2015/16 and 2016/17.
The transport allowance will be calculated from the Industry Haulage Scheme costs, including cleaning and loading - there will not be an additional payment in 2016/17 for those in the Industry Haulage Scheme.
William Martin added: “The package we have negotiated should enable beet to compete in rotations on farm and builds for a successful future for both growers and the UK sugar beet industry.”
Growers can expect to receive their contract offers during the week beginning July 6th 2015 and if they have any questions on the announcement they can contact the NFU Sugar Helpline on 0370 066 1974.