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2019 sugar beet contract offer announced by British Sugar and NFU Sugar

It includes an announcement the crown tare deduction will be removed permanently for all new contracts.


Alex   Black

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Alex   Black
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2019 sugar beet contract offer announced

British Sugar and NFU Sugar have announced an agreement on sugar beet contract terms for 2019/2020, including some ‘important principles for contracting in future years that we believe help deliver transparency and certainty in a highly competitive market’.

 

A one year 2019 contract price of £19.07/t with no crown tare deduction has been announced, equivalent to £20.42/t under the terms and conditions of previous contracts.

 

Agreement

 

British Sugar agriculture director Colm McKay said: “We are pleased to have reached this agreement with NFU Sugar and believe it will stand us in good stead for the future.


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“Our industry is one of the most efficient in the world and we look forward to continuing to work with over 3,000 growers to produce a quality product.”

 

NFU Sugar board chairman Michael Sly said: “After a protracted negotiation in the face of difficult market conditions NFU Sugar has reached agreement with British Sugar on improving the simplicity and transparency of contracting which we believe will put the sugar growing industry on a firm footing for the future.”

 

Growers can expect to receive their contract offers online or in the post in the week commencing 24 September.

The agreement also includes:

  • A commitment from British Sugar the crown tare deduction will be removed permanently for all new contracts agreed from the 2019 crop onwards
  • No new three year deal on offer in 2019
  • For the 2019 one year contract - a 15 per cent, increasing from 10 per cent in 2018, revenue share for growers above an EU average white sugar price of €375/tonne down from €475/tonne in 2018
  • Late Delivery Allowance payments in each campaign to be calculated based on the highest guaranteed minimum beet contract price paid during a campaign
  • Performance rules to be based on fulfilling at least one of two criteria, either delivering sufficient tonnage or planting a sufficient area of sugar beet.
  • Restrictions on leasing reducing the ability for non-farmers to hold on to CTE, while maintaining the ability to lease between active growers
  • There has also been an agreement to work together on a greater risk/reward contract model with the intention of a one year pilot in 2020/2021
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