British Sugar and the National Farmers Union have agreed new improved sugar beet prices for the next two seasons.
The increase results from a change in the way the animal feed element of the sugar beet price is calculated. The formula will now use a two-year average wheat price rather than the current three-year average, which will increase the animal feed element of the beet price.
British Sugar has also agreed to raise in 2009 the upper limit for the wheat price in the calculation from £95/t to £150/t.
The net effect of the changes could be a sugar beet price of £24.01/t in 2009, based on a 72p Euro exchange rate and a wheat price of £150/t. At a wheat price of £130/t the sugar beet price would work out to be £22.51/t.
The new animal feed formula will also increase 2008 sugar beet prices. At current feed wheat prices the 2008 beet price is forecast to be about £21/t. The full contract price plus the transport allowance and late delivery bonus will be paid on all tonnage delivered in 2008, including surplus (‘C’) beet.
“These new enhanced terms illustrate British Sugar’s commitment to the future of the industry and growers can now plan in the confidence that if alternative crop prices remain high this will be reflected in the sugar beet price,” British Sugar said.