Cash Advance Payments

British Sugar launches new £40/t contract for 2023-24

Sugar beet growers are being offered a substantial price increase for next season which both the NFU and British Sugar hope will encourage more farmers to stick with the crop and reverse recent declines of the cultivated area.

A statement from the two bodies confirmed a beet price of £40/t for contract year 2023-24, up 48% on last year, with a number of new options growers must consider as part of the contract.

See also: Three Ways to Maximize Sugar Beet Yields

“With growers facing significant cost increases and prices for alternative crops having reached unprecedented levels, I am pleased that we have agreed a contract offer which should maintain sugar beet as an important part of crop rotations. producers,” said Michael, Chairman of the Board of NFU Sugar. Sly.

“After a few difficult seasons that highlighted the heightened risks producers face, I am delighted that we have found an innovative way to enable producers to mitigate their yield risk.

“There is no doubt that we have been concerned about the decline in acreage over the past two years and the effect this has had on the supplier base. It was important that this deal addressed that and now I hope we see that decline reversed and the industry rebound.

In addition to the base price increase, the new contract offers:

  • A “yield guarantee” product (in exchange for a small payment) that protects income against yield losses
  • A “forward” variable price contract up to 20% of the 2023-24 harvest
  • A local premium of up to £2/tonne for those within 20 miles (20 miles) of any UK sugar factory
  • An “upgrade” of £25/t to £32/t for all growers with an existing 2023 pledge (which can be further upgraded to £40/t if they pledge to grow beet sugar plantation in 2024)
  • A cash advance option.

Paul Kenward, managing director of British Sugar, said £40/t offered growers a “healthy margin, even at today’s high costs”, and compared very favorably to alternative crops.

“We believe this simple and attractive offering provides choice, security and profitability during an extremely difficult time for all growers,” he said.

“In addition to an attractive price, we have heeded the calls for flexibility, and growers now have the option of opting for the new risk mitigation option we offer for yield protection, as well as a cash advance option for the 2023 harvest. .

“We are really well placed to partner with growers over the long term, and I’m sure this deal will encourage further investment in the future.”