Deepening row leaves Suffolk sugar beet growers in limbo

Farmers' leaders have hit out at the company after it communicated a new "offer" to beet growers yesterday while talks are ongoing.

British Sugar said the two sides had come to an agreement on most aspects but talks were stalled over a futures market offer that it argued was only relevant to a very small number of growers - so it decided to reach out to growers again.

But the National Farmers' Union (NFU) said the deal was only valid when all parts of it were aligned.

In response to the actions of British Sugar, the NFU - which negotiates on behalf of growers - cast doubt on the validity of any contract - and said it was "astounded" the company "would choose to move to a costly arbitration process in preference to reaching agreement".

Because growers have a single customer for their sugar beet crop, the government has created an annual framework so that British Sugar and NFU Sugar can come to an agreement on price.

But this year, talks have stretched out from June to December without a final agreement.

The NFU said it had "worked tirelessly" to find a compromise. It wanted to provide a "realistic chance" that growers can benefit from buoyant sugar market conditions in 2024.

"For the avoidance of doubt, NFU Sugar has not agreed the offer British Sugar has today communicated to growers, leaving the validity of any contract made in relation to this offer in doubt," it said.

"Disappointingly, as yet we have not been able to conclude a deal, as British Sugar is, in our view, refusing to accept that growers must know the terms of each part of the contract they are signing up to," it said.

The futures linked contract was "an integral part of our package", it added.

"As things stand, British Sugar has stated that they will now move to the arbitration process, notwithstanding that we believe the costs of an arbitration will far outstrip the cost to British Sugar of agreeing to the outstanding points."

NFU Sugar board chairman Michael Sly said: “With the outstanding disagreement on the contract of such small financial cost to British Sugar and yet critical to the full benefits of the contract being realised, we are astounded that British Sugar would choose to move to a costly arbitration process in preference to reaching agreement on this.

“We have only achieved the significant progress we have made with British Sugar because of the overwhelming unity and support we have had from growers.

"More than 1,300, representing over 70% of the national sugar beet tonnage, have pledged their support for the vital role NFU Sugar plays in securing a fair sugar beet price for growers.

"Last week, hundreds of growers attended NFU Sugar meetings to voice their support, and well over 500 letters have been written by growers to their constituency MPs on this issue.

“British Sugar can be in no doubt of the strength of feeling among beet growers and support for NFU Sugar as the growers’ collective representative body.”