Both parties recognise that growers’ appetites for risk vary and choice is important, therefore growers can select from a number of options:
- a £40 per tonne fixed price (as per the 2023/24 price)
- a core price of £38 per tonne plus a market-linked bonus
- a Futures-linked option, for up to 35% of their contract
- yield protection at a £1 per tonne reduction on the core or fixed contract price
“I would like to thank growers for their overwhelming support of NFU Sugar in these very difficult negotiations.”
NFU Sugar Board Chair Michael Sly
The cash advance option, late delivery allowance, local premium, and frost insurance are the same as last year.
This announcement comes after a lengthy negotiation, and both British Sugar and NFU Sugar have agreed that the process has not served the industry well. As part of the continued modernisation of our industry we have therefore agreed a shortened negotiation timeline which will deliver a final price and contract earlier in the year.
Keith Packer, Managing Director, British Sugar, said: “I am pleased that we have reached a contract offer for the 2024/25 growing season with NFU Sugar.
“We believe this offer represents great potential for growers and shows the long-term commitment British Sugar has to our homegrown sugar industry.
“This negotiation has been my first as Managing Director of British Sugar and I want to make sure that in the future we all do better for our growers. This is why it was important to agree a shorter timeline which will allow both ourselves and NFU Sugar to negotiate to a conclusion for an offer to be with growers by 30 October. The changes we have made will ensure that this is in place for next year’s negotiations.
"We are now looking forward to moving on and working together on key projects around sustainability, our critical Virus Yellows Pathway and upholding a fair trade policy environment."
Michael Sly, Chair, NFU Sugar Board, said: “I would like to thank growers for their overwhelming support of NFU Sugar in these very difficult negotiations. It should be clear to everyone that grower unity with NFU Sugar has delivered this deal.
"We will continue to work tirelessly to ensure that our industry is modernised and growers always receive a fair share of the value of the sugar that comes from their beet.”
Contracting screens will open on Thursday 21 December.
Growers within 20 miles of any British Sugar factory will receive a local premium of up to £2, based on distance to the factory.
