British Sugar has publicly pledged ongoing support to its 3000 growers by unveiling a package providing assurance of a long-term commitment to the UK’s homegrown sugar beet industry.
Most notably, this package is set to include a three-year £12m virus yellows assurance fund, provided by British Sugar to compensate for yield losses – which will no doubt bring some comfort to those struggling with virus yellows pressures since the ban of neonicotinoids, says Peter Watson, agriculture director at British Sugar. “Our new contracts offer a competitive support package for each and every grower, which sets a fair price, market-linked bonuses, and flexibility and innovation.
“Given the difficulties many growers have faced in recent months with aphids, we’re particularly pleased to offer our new virus yellows assurance in the contracts, to help support growers through the challenges of the disease.
“The funding will be available to all growers suffering from virus yellows yield losses – from 10% to 35% – with a maximum compensation rate of 45% of costs.”
Looking to next year’s prices, growers will be able to attain a premium by signing up to long-term contracts.
“On a no-crown tare basis which sees growers paid for the entire root of beet, the one-year contract for 2021 is offered at £20.30/adjusted tonne – with a 10% market bonus when the adjusted EU reference price exceeds €375/t – while the three-year contract will pay £21.18 per adjusted tonne, with a 25% market bonus in the case of the adjusted EU reference price surpassing €400/t,” he adds.
The £12m virus yellows fund is complemented with the relaunch of a Grower Finance pilot to provide cash flow for up to 50 growers, in addition to the ability to offset seed costs against future beet income, explains Peter. “The new ‘My British Sugar’ portal also provides access to contract, seed, delivery and financial information.”
In a bid to give producers greater flexibility when it comes to marketing their beet, British Sugar is also offering 100 growers the chance to be involved with its brand-new futures-linked variable price contract pilot. “Those involved with the pilot will be able to allocate up to 10% of their Contract Tonnage Entitlement, and monitor the sugar price using a new trading platform app, supplied by Czarnikow Sugar,” explains Peter. “Prices may go up or down, putting the risk in the hands of the grower.”
For those looking to maximise their margins, the joint British Sugar and NFU Sugar Seed Working Group has achieved a saving of up to 5% in seed costs adds Peter. “It’s also important to point out that we’re looking to increase crop area for those growers contracted to East Anglian factories. We hope that with this new support package in place, many will feel more comfortable to take advantage of the opportunities that are now available to them.
“While it’s a challenging time for the sector, one thing that won’t change next year is British Sugar’s continued industry-wide advocacy for plant protection products and driving innovation in seed technology as we work closely with industry bodies to bring the most-needed solutions to market for our growers.”
For more information about the 2021 contract opportunities, click here
