Both NFU Sugar and British Sugar said they 鈥榬ecognise the importance of choice and flexibility鈥�, and are pleased to offer growers the following options:
- A one-year fixed price contract at 拢33.00/t, for up to 70% of your contract.
- A one-year contract with a guaranteed base price of 拢30.70/t plus an improved market-linked bonus.
- A futures-linked contract, for up to 50% of your contract.
Growers can choose to split their tonnage between any of these contract options.
- An enhanced yield protection option is available for a reduced contract price of 拢32 for the fixed price option or 拢29.30 for the market-linked bonus and futures options.
A cash advance, late delivery allowance and frost insurance are also being offered, in line with previous years. However, given the challenging conditions in the sugar market, local premiums will not be paid in 2025/26.
Significant enhancement to this year鈥檚 contract is the relaxed performance rules for one year only, ensuring growers retain their CTE (Contract Tonnage Entitlement) in 2026 if they deliver at least 70% of their contracted tonnage in 2025/26.
A 鈥榝air deal鈥� despite global price drop
In a letter to growers, NFU Sugar and British Sugar said they believe they have struck 鈥榓 fair deal鈥� despite recent challenging sugar market conditions. Both parties wrote to growers in June to warn that world sugar market prices had dropped substantially in recent months and, as a result, the 2025/26 price would be lower than the past two years.
The deal announced today 鈥榚nsures value in important areas and allows you meaningful opportunities to benefit from the upside should the market recover鈥�, the letter said.
Responding to the news, NFU Sugar Board chair Michael Sly said: 鈥淚 am pleased we have come to a timely agreement with British Sugar for the 2025 sugar beet contract. The offer represents a fair deal in the context of the global sugar market.
鈥淚mportantly, it provides growers with a range of choices dependent on their appetite for risk.
鈥淭he yield protection acknowledges the continuing threat of virus yellows disease and likelihood that the industry won鈥檛 be granted emergency use of Cruiser SB in 2025.
鈥淭he relaxation of the performance rules recognises that some growers may wish to grow less this year, but retain their entitlement to grow as normal in future years.鈥�
鈥�The offer represents a fair deal in the context of the global sugar market.鈥�
NFU Sugar Board chair Michael Sly
Working in partnership
Managing Director at British Sugar Keith Packer said: 鈥淭his year鈥檚 contract offer to growers has been created in partnership with NFU Sugar. Over the last few years, we have learned how important flexibility and choice is to our growers and have therefore made sure that these are at the heart of this year鈥檚 offer.
鈥淲hilst the core price reflects the current downturn in sugar markets, we have built in mechanisms which mean growers will share in any potential upside. This means if sugar markets do well, we all do well.
鈥淚鈥檓 now in my second year as Managing Director of British Sugar and I am passionate about working in partnership with NFU Sugar and our growers. We have redesigned our seed working model in collaboration and we are now building a different type of contracting model.
鈥淲e will continue to evolve and adapt how we work together. Growers are at the core of our homegrown sugar industry, and we will only succeed if we work together.鈥�
NFU Sugar and British recently announced changes to the UK sugar beet seed sector, designed to offer growers more choice and flexibility.
