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SHOT ACROSS THE BOWS OF BRITISH SUGAR

Oliver Walston phoned me a few weeks ago. "Will you be growing sugar beet next year? he enquired. "Good question", I replied, "we haven't decided yet. We're still hoping British Sugar's offer will increase. Meanwhile we are hanging onto our unsigned contract".

Oliver said that was his position too and asked what were we going to do about it. I commented that I was getting to old for campaigning but would support him if he initiated one. In the event, as everyone now knows, he arranged a meeting of growers on a farm near Peterborough for yesterday morning. And yes, as promised, I was there.

About 300 beet growers turned up representing some 14% of British Sugar's tonneage. It was a vivid illustration of how much farmers care about sugar beet and how unhappy they are at British Sugar's attitude to pricing. Most there, I suspect, and certainly all who spoke, said they enjoyed growing the crop that had done them well in the past. But they were not prepared to grow it at a loss to feather British Sugar's already well lined nest.

A number pointed out that a base price of £24/t next year would probably be worth less than the £20 we received last year because costs had increased so much and were still increasing. Others told how they had reduced their acreage of beet last year and planted rape instead and significantly increased their profits as a result.

There were various suggestions as to the price that should be demanded, below which farmers should not grow - a reflection, of course, of the capacities of different quality soils. Some Grade 1 land will regularly yield 80t/ha while Grade 3 might only yield 60t in a good year. But while those on the best land could probably still make a profit at the price on the table they could make even more from other crops. Moreover, there were more profitable alternatives for all farmers and soils these days. Either way £24/t was definitely not enough, all agreed and growers should stick out for more.

Somewhat surprisingly, for they had been criticised for not getting a better deal, a few NFU people were there, including Helen Kirkwood, the NFU's staff specialist. She welcomed the meeting and said it strengthened her position enormously. She was ready to re-open negotiations with British Sugar and would use the strength of feeling expressed at the meeting to reinforce her demands.

At the close it was agreed by a show of hands that growers should consider signing their contracts for whatever area they felt comfortable with and on which they thought they could grow economic crops and sending them to the NFU to be forwarded to British Sugar only when the union representatives were satisfied. "And that means not less than £30/t several shouted."

The meeting and what was said at it must have been reported to British Sugar. The future of the UK sugar industry is in their hands. Growers await developments with interest.

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This page contains a single entry from the blog posted on July 19, 2008 9:32 AM.

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