British Sugar has announced a new offer following weeks of talks with NFU Sugar, with growers now able to pick a fixed price option of £40/t or £38/t plus market-linked bonus.
Despite the revised offer by the UK's sole sugar beet processor, it has not been able to reach a final agreement with NFU Sugar on the 2024-25 contract year.
In a letter to 2,300 growers, Dan Green, agriculture director at British Sugar, said the latest offer followed "intense negotiations" with the union.
“The only outstanding contract term which is now disputed is around the futures contract," Mr Green explained.
"It is particularly disappointing that an issue which affects so few people – currently just 1% of our grower base - will delay us agreeing an offer which will benefit the vast majority."
British Sugar's revised offer includes a fixed price option at £40/t, matching the price for the current crop, or a £30/t plus a market-linked bonus.
Growers will also see price negotiations start in May each year and an escalation and dispute resolution process ending no later than 31 October.
However, NFU Sugar has not agreed the renewed offer, leaving the validity of any contract made in relation to it in doubt.
NFU Sugar Board chairman, Michael Sly, said the union was 'astounded' that British Sugar would "choose to move to a costly arbitration process in preference to reaching agreement on this".
He said: “We have only achieved the significant progress we have made with British Sugar because of the overwhelming unity and support we have had from growers.
"More than 1,300, representing over 70% of the national sugar beet tonnage, have pledged their support for the vital role NFU Sugar plays in securing a fair sugar beet price for growers.
"Last week, hundreds of growers attended NFU Sugar meetings to voice their support, and well over 500 letters have been written by growers to their constituency MPs on this issue.
“British Sugar can be in no doubt of the strength of feeling amongst beet growers and support for NFU Sugar as the growers’ collective representative body.”
