Both NFU Sugar and British Sugar said they ‘recognise the importance of choice and flexibility’, and are pleased to offer growers the following options:
- A one-year fixed price contract at £33.00/t, for up to 70% of your contract.
- A one-year contract with a guaranteed base price of £30.70/t plus an improved market-linked bonus.
- A futures-linked contract, for up to 50% of your contract.
Growers can choose to split their tonnage between any of these contract options.
- An enhanced yield protection option is available for a reduced contract price of £32 for the fixed price option or £29.30 for the market-linked bonus and futures options.
A cash advance, late delivery allowance and frost insurance are also being offered, in line with previous years. However, given the challenging conditions in the sugar market, local premiums will not be paid in 2025/26.
Significant enhancement to this year’s contract is the relaxed performance rules for one year only, ensuring growers retain their CTE (Contract Tonnage Entitlement) in 2026 if they deliver at least 70% of their contracted tonnage in 2025/26.
A ‘fair deal’ despite global price drop
In a letter to growers, NFU Sugar and British Sugar said they believe they have struck ‘a fair deal’ despite recent challenging sugar market conditions. Both parties wrote to growers in June to warn that world sugar market prices had dropped substantially in recent months and, as a result, the 2025/26 price would be lower than the past two years.
The deal announced today ‘ensures value in important areas and allows you meaningful opportunities to benefit from the upside should the market recover’, the letter said.
Responding to the news, NFU Sugar Board chair Michael Sly said: “I am pleased we have come to a timely agreement with British Sugar for the 2025 sugar beet contract. The offer represents a fair deal in the context of the global sugar market.
“Importantly, it provides growers with a range of choices dependent on their appetite for risk.
“The yield protection acknowledges the continuing threat of virus yellows disease and likelihood that the industry won’t be granted emergency use of Cruiser SB in 2025.
“The relaxation of the performance rules recognises that some growers may wish to grow less this year, but retain their entitlement to grow as normal in future years.”
“The offer represents a fair deal in the context of the global sugar market.”
NFU Sugar Board chair Michael Sly
Working in partnership
Managing Director at British Sugar Keith Packer said: “This year’s contract offer to growers has been created in partnership with NFU Sugar. Over the last few years, we have learned how important flexibility and choice is to our growers and have therefore made sure that these are at the heart of this year’s offer.
“Whilst the core price reflects the current downturn in sugar markets, we have built in mechanisms which mean growers will share in any potential upside. This means if sugar markets do well, we all do well.
“I’m now in my second year as Managing Director of British Sugar and I am passionate about working in partnership with NFU Sugar and our growers. We have redesigned our seed working model in collaboration and we are now building a different type of contracting model.
“We will continue to evolve and adapt how we work together. Growers are at the core of our homegrown sugar industry, and we will only succeed if we work together.”
NFU Sugar and British recently announced changes to the UK sugar beet seed sector, designed to offer growers more choice and flexibility.
