British Sugar has unveiled details of a compensation deal for growers affected by the closure of its Allscott and York factories.
The deal is part of a three-year Inter-Professional Agreement for all growers covering the 2007 to 2009 sown crops.
Based on the current euro rate, beet prices will be £20.28 per adjusted tonne in 2007, falling to £19.22 in 2008 and £19.00 in 2009.
Growers currently contracted to Allscott and York who are within 60 miles of British Sugar’s Newark factory will be offered a contract to deliver beet to Newark.
To balance factory capacities and campaign lengths, growers who are greater than 60 miles from Newark will not be offered a Newark contract.
Allscott growers over 60 miles from Newark will be offered a contract to supply British Sugar’s factory at Bury St Edmunds, Suffolk.
York growers over 60 miles from Newark will be offered a contract to supply the Wissington factory in Norfolk.
Allscott and York growers who are greater than 50 miles from Newark can elect to relinquish their contract to British Sugar.
If they do so, they will receive a one-off payment of £8.00 per Contract Tonne Entitlement (CTE).
Alternatively, they can sell their contract to a Bury, Cantley or Wissington grower for £7-7.50 per CTE depending how far the purchasing grower is from the factory.
In addition, Allscott and York growers who continue to grow in 2007 will receive a special one-off payment.
This amounts to £3.00 per tonne of Contract delivered payable in April 2008 for growers who are 51 to 60 miles from Newark will receive
Allscott growers delivering to Bury factory and York growers delivering to Wissington will receive £4.00 per tonne of Contract delivered payable in April 2008.
Growers who cease to grow following the 2007 crop will receive a further payment of £2.00 per tonne of Contract delivered to be made in April 2008.
All other growers affected by the 50 mile transport allowance cap will receive a one-off payment of £3.00 per tonne of contract delivered payable in April 2008.
Karl Carter, British Sugar’s agriculture director, said the company remained committed to the UK Beet Sugar Industry.
In a letter to growers, he said: “We have informed DEFRA of our intention to purchase the additional 83,000 tonnes of sugar quota as part of the EU restructuring scheme.
“In addition a further £27M of capital investment will be made at the four remaining factories to accommodate the additional throughputs.”