Suffolk sugar beet farmers stand firm as price row escalates

British Sugar has come under fire from National Farmers' Union (NFU) Sugar chairman Michael Sly who expressed outrage after the company wrote to growers with an "offer" while talks between the two sides are ongoing.

NFU Sugar negotiates on behalf of growers towards the following year's deal. However, this year talks appear to have reached stalemate as they stretch on into the autumn.

On Wednesday, British Sugar contacted its 2,300 sugar beet growers - many of whom are based in Suffolk, north Essex and wider East Anglia - with details of its contract offer for the 2024-25 growing season.

Mr Sly followed up with his own email to growers. 

“We are outraged that British Sugar contacted all growers and provided growers with a document which asserts to contain details of the 2024/25 Sugar Beet Contract Offer," he said.

“NFU Sugar has not agreed this offer, leaving the validity of any contracts made in relation to this offer in doubt. Active negotiations are still under way.

“Further updates will be issued to beet growers as a matter of urgency.”

British Sugar said it was offering a "competitive core price" of £38/tonne - lower than the £40/t price for this season's crop - with a market-linked bonus that could take it up to £40/t.

British Sugar agriculture director Dan Green said they decided to act as growers needed certainty in order to plan.

“I am sorry to say that, despite our best endeavours and months of negotiation, we have not yet been able to agree a price and full terms and conditions with NFU Sugar," he said.

"We will continue to will continue to work through the negotiation and dispute resolution process with them. 

"However, we know that as we are now at the start of November, growers need the financial security of a contract and the certainty of a guaranteed price as soon as possible."  

He added: “We are confident that this offer is extremely competitive, making beet the most profitable crop on farm and will ensure it remains an attractive crop for growers across the East and East Midlands.” 

James Nunn - who farms with father, David, at Stowupland - said they would be led by the NFU and continue to monitor the situation.

"You want to hold your nerve on these sorts of things," he said.

"Obviously they are having a bit of a battle. We received the British Sugar contract offer which NFU had not agreed - that's why NFU is so upset."

He added: "Obviously NFU are doing their best to get us the best deal which is why we employ them in many ways so it's very much watch and see what happens.

"It certainly won't change our view on growing sugar beet at this stage but watch this space."

The talks have gone on longer than normal - and with growers having to purchase their inputs and set aside land the lack of a deal is an added pressure.

"We know we'll have an area of sugar beet unless negotiations go terribly badly but it's how much," said James.

"Between farmers you want a little bit of solidarity so I would hope that farmers will wait and see what they come up with and hope that British Sugar and the NFU can resolve it and come up with a fair deal for farmers really.

"If people jump ship and sign up it might not end up with the best deal for farmers."

Suffolk NFU chairman Andrew Blenkiron, director of the Euston Estate, near Thetford, said he was "disappointed" the two sides had not yet reached agreement as a deal was normally in the bag by about June.

"It's far too late in the season. It's more disappointing that British Sugar tries to short-cut the process by contacting the growers directly rather than using the channels we have established over time and that have been successful.

"Maybe it should have been referred to a mediator earlier than this to try and help find a solution."

He was growing about 800 acres of beet this season but previously dropped it to about 200 acres when it was uneconomic to grow, he said. But this was a monopoly market with only one buyer in British Sugar and that was why the system with NFU Sugar has worked so well, he said.

He was starting to review his options now and looking at alternative crops, he said.

Other elements of the British Sugar offer include a 20% cash advance to ease cashflow issues, a late delivery allowance to growers who choose to deliver after Christmas and frost insurance.