February 2010

Agreement on forward-looking beet contract

The NFU and British Sugar have announced the successful conclusion of their intensive negotiations governing arrangements for the UK sugar beet permanent quota.

The four-year framework, starting with crops sown in 2011, covers the areas of sugar beet contracting, beet pricing, whole beet sampling, transport arrangements, an out-goers scheme and funding for the British Beet Research Organisation (BBRO).

The price of quota sugar beet will be determined annually based on a pricing mechanism developed by independent agricultural consultants. This will allow a guaranteed price to be issued before contracting starts on or before 30th June. The first publication of the results of the mechanism will take place in June 2010.

Commenting on the agreement NFU Sugar Board Chairman, Willian Martin, said, "This agreement will lead to greater certainty within the British beet industry, less adversarial relationships between growers and processor and provides the framework which will improve the competitiveness of the sector.

We believe it is the most progressive sugar beet agreement to be found anywhere in Europe, and is at the leading edge for any agricultural product."

Karl Carter, British Sugar Group's Technology Director, said, "This is a balanced agreement and represents a firm platform on which the NFU and British Sugar can stand together, shoulder-to-shoulder, in preparation for the next round of regime reform in 2015."