Sterling’s fall restores part of beet price cut for 2016-17
© Tim Scrivener Beet growers contracted to British Sugar will get £1.32/t more than they were expecting for 2016-17 tonnage, as a result of the fall in the value of sterling.
The contract price for the season will rise from the £20.30/t originally announced (which was a 15% drop on the 2015-16 price) to £21.62/adjusted tonne.
This will apply for contract tonnage entitlement (CTE) and industrial contract (ICE).
The beet prices paid by British Sugar are governed by the interprofessional agreement negotiated with the NFU.
This provides for prices to rise if the EU minimum rate for beet, set in euro’s, exceeds the fixed price agreed of £20.30/adjusted tonne.
See also: British Sugar announces 15% cut in 2016-17
“Following the recent weakening of sterling, this is the case for 2016,” said a statement from the processor’s agricultural director Colm McKay.
“The exact rate was dependent on the average of the September exchanged rate published by the European Central Bank, which has now been released.”
The price for surplus beet for 2016-17 season will also rise above the £15/t already set, with the majority of surplus beet delivered this year likely to be needed to meet the national quota.
If this is the case, then the price paid for part or potentially all of the surplus beet delivered will be topped up to the £21.62/t CTE price.
There will be no change in levy rates, which are: British Beet Research Organisation 14p/adjusted tonne (plus VAT) and NFU 8p/adjusted tonne (plus VAT).