British Sugar has made a formal offer to its 2,300 growers of a sugar beet price worth £38 per tonne for the 2024-25 contract year.
The UK's sole processor of the sugar beet crop has written to growers with details of its 'competitive' contract offer for the 2024-25 growing season.
However, British Sugar said it has not yet been able to agree a price and full terms and conditions with NFU Sugar, with talks going on for months.
NFU Sugar said it was 'outraged' that the processor had contacted growers with the contract offer, as it had not agreed to it.
Highlighting the offer, British Sugar said it was 'built around choice and flexibility', including security of a core £38/t price for beet delivered.
There will also be the 'added potential' with a market-linked bonus, which would deliver over £40/t in today’s sugar market.
The offer includes a 'peace of mind' if growers choose the processor's 'yield protection' contract for a core price of £37/t.
And the processor confirmed that it will continue to pay for frost insurance at no extra cost to growers.
Dan Green, British Sugar agriculture director, said the offer was 'extremely competitive' despite a dispute resolution process with NFU Sugar.
“I am sorry to say that, despite our best endeavours and months of negotiation, we have not yet been able to agree a price and full terms and conditions with NFU Sugar.
"However, we know that as we are now at the start of November, growers need the financial security of a contract and the certainty of a guaranteed price as soon as possible."
Michael Sly, NFU Sugar chair, said further updates from the union would be issued 'as a matter of urgency.'
He said: "We are outraged that British Sugar contacted all growers earlier today and provided growers with a document which asserts to contain details.
"NFU Sugar has not agreed this offer, leaving the validity of any contracts made in relation to this offer in doubt. Active negotiations are still underway."
British Sugar processes around eight million tonnes of sugar beet and produces up to 1.2 million tonnes of sugar annually.
