One or three year contract
British beet price radiates confidence
British Sugar, the only sugar beet processor in the United Kingdom, has announced its 2018 beet price together with representative NFU Sugar. The beet price holds up in the first free growing year without quota restrictions. If the sugar price exceeds €475 per tonne, a bonus is paid.
The 2017/18 contract saw many British farmers return to growing sugar beet after an earlier crop stop. It happened when the price hit £20 per tonne. After difficult negotiations, British Sugar came up with a price of £22, which again convinced many arable farmers.
25,69
euros/ton
Price at least higher
For the 2018/19 season, British Sugar sets the price at £22,50 per tonne. Converted to €25,69 per tonne at current exchange rates. Last year, the beet processor started offering three-year contracts. They can also be closed for next season. The price for 2018, 2019 and 2020 will then also be £22,50.
Bonus with sugar price
The difference between the one- and three-year contracts, apart from the duration, is also the bonus. If the EU sugar market price exceeds €475 per tonne, the bonus for the one-year contract is 10% on top of the base price. This is 25% for a three-year contact. It concerns percentages of profit, above €475, of the sugar price. €700 per tonne is the limit for the bonus system.
Certainty for grower
“The contract provides some security in these risky times,” said Michael Sly on behalf of NFU. “Growers can apply for a contract that suits their business, depending on the risk. It is a hopeful future for the UK sugar sector.” The sugar producer also says that it is satisfied with the new contract. It says it attaches great importance to local sugar production.
Niels van der Boom
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