British Sugar and NFU Sugar have agreed a deal for the 2024-2025 sugar beet contract following months of negotiations and disagreement.
As part of the finalised deal, growers will be able to choose a £40 per tonne fixed price or a core price of £38 per tonne plus a market-linked bonus.
A futures-linked option, for up to 35% of their contract, is also on offer, as well as a yield protection at a £1 per tonne reduction on the core or fixed contract price.
The cash advance option, late delivery allowance, local premium, and frost insurance are the same as last year.
The announcement comes after a lengthy negotiation lasting months, with British Sugar and NFU Sugar admitting that the process "has not served the industry well".
Both parties have therefore agreed a shortened negotiation timeline which would deliver a final price and contract earlier in the year.
Announcing the deal on Monday (18 December), British Sugar and NFU Sugar said that growers’ appetite for risk and choice was important.
"We believe this offer represents great potential for growers and shows the long-term commitment British Sugar has to our homegrown sugar industry," said Keith Packer, managing director at British Sugar.
“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."
Michael Sly, chair of NFU Sugar Board, added: “I would like to thank growers for their overwhelming support of NFU Sugar in these very difficult negotiations.
“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.
