News Beets
After long debate, British Sugar raises beet price
After much deliberation, British Sugar has reached an agreement with the beet growers in Great Britain about the new beet contract. There are contracts for both 1 year and for a period of 3 years. The price goes up slightly.
This agreement did not come about easily. Normally, the agreement is already concluded in the summer. The price of a 1-year contract for 2020 has been set at €22 per tonne (at the current exchange rate of the pound, dated September 26). That is approximately €0,50 per tonne more than in 2018. This price includes deduction for tare reduction.
A 3-year contract is offered over the period 2020 to 2022 for €23 per tonne. For both contracts, growers receive a bonus if the European reference price for white sugar reaches a certain level. For the 1-year contract this applies at a reference price of €375 per tonne and for the 3-year contract €400 per tonne. Growers receive a bonus of respectively 15% of the price above the reference price or 25% of the amount that the reference price is above the set level.
Bonus is important
A maximum of 65% of all contracts can be concluded as a 3-year contract. Demand for these contracts came mainly from the growers, British Sugar actually no longer wanted to commit itself for such a period. It is important for the representatives of the beet growers that growers can receive a bonus if the sugar price in the EU increases during that period.
The British contract prices are far below the level that the Cosun cooperative pays out to its members in the Netherlands. The base price for quota beet from Cosun stands at €32,50 per net tonne of beet, while surplus beets still yield €20 per tonne.
Anne-Jan Doorn
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