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Price Agreed for 2014/15 Sugar Beet Campaign

23 September 2013

UK - The NFU and British Sugar have announced their agreement for a price increase for the 2014/15 beet campaign.

Following months of detailed discussions, the price for the 2014 crop, which would have been set at £27.67/t under the IPA model, has been agreed at a higher level of £31.67/t.

NFU sugar board chairman William Martin said: “We are pleased to have reached a successful agreement with British Sugar on the 2014/15 sugar beet price.

“Over the past two years the NFU has highlighted problems with the current price model which has not been flexible enough to cope with changes in commodity markets. It also does not recognise the need for a higher margin relative to other crops, due to the increased risks arising from long and difficult campaigns, and the consequent effects on other crops in the rotation.

“Through our detailed negotiations held with British Sugar since the beginning of this year there has been acknowledgment and acceptance of the need for a new way forward, resulting in the agreement of the 2014/15 price in order to address the concerns of farmers and maintain beet’s place in their rotations. The package also recognises the difficult growing seasons experienced in recent years and grower concerns relating to longer campaigns. We have also agreed to set up joint working groups to explore ways of ensuring that the beet contract meets the needs of the industry in future.

“As well as the 14 per cent uplift in the beet price we have also agreed a further enhancement to the Late Delivery Allowance to help address additional risks for the second half of the campaign: a daily increase to the base price from December 26 will mean growers delivering on February 28 will receive £35 per adjusted tonne.

“We hope that with the price now agreed, growers will be able to complete cropping plans for the 2014 harvest.”

TheCropSite News Desk

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