National Farmers’ Union (NFU) Sugar and British Sugar have concluded negotiations and agreed a deal for the 2025/2026 sugar beet contract.
Both NFU Sugar and British Sugar said they recognise the importance of choice and flexibility.
They are offering growers the following options:
- A one-year fixed price contract at £33.00/t, for up to 70% of their 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 their 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 £31.60 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.
An enhancement to this year’s contract however is the relaxed performance rules for one year only, ensuring growers retain their Contract Tonnage Entitlement (CTE) in 2026 if they deliver at least 70% of their contracted tonnage in 2025/26.
Sugar beet contract
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.”
Sly said 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.
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.”
Packer is now in his second year as managing director of British Sugar and said he is passionate about working in partnership with NFU Sugar and its 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.”
