Sugar beet growers will receive a minimum price of £22.50/t for the crop in 2018/19 following an agreement between British Sugar and NFU Sugar.
The new beet contract will continue to offer both one year and three year contracts of at least £22.50/t each with market-linked bonus elements.
The joint announcement on Friday (14 July) represents an increase of £0.50 on the 2017 minimum price of £22/t.
British Sugar agriculture director Colm McKay said he believed the deal would “continue to build on the firm foundations of our home-grown sugar industry”.
Growers entering a one year contract will receive at least £22.50/t plus a market bonus.
Growers on a three-year contract will receive the at least £22.50/t plus a market bonus for each of the 2018, 2019 and 2020 sugar beet crops.
The terms of the market-linked bonus remain the same as those agreed last year:
One year contract market linked bonus is based on a 10% share of the sugar market price above €475/tonne
The three year contract market linked bonus will be based on a 25% share of the sugar market price above €475/tonne.
The bonus will continue to be linked to the average EU market price for white sugar published by the EU Commission on a monthly basis each marketing year.
NFU Sugar chairman Michael Sly said: “We are delighted to have reached a successful conclusion with British Sugar on the contract terms for sugar beet for next year.
“This agreement offers growers a range of options which they can tailor to suit their business needs and their appetite for risk.
“It provides some certainty in an uncertain world and secures a bright future for the UK sugar beet growers.”
Growers can expect to receive their contract offers online or in the post by mid-August.