Outgoers scheme releases 700,000t
FINAL results of the recently concluded British Sugar outgoers scheme show that 1300 of the UKs 8400 producers have decided to call it a day.
This has released more than 700,000t of contract tonnage to existing farmers wanting to expand and about 120 new growers. "We are delighted with the whole process," said BS spokesman Paul Bee.
"One of the aims of the scheme was to allow people to release some capital if they wanted get out. They have now realised more than £20m which must be a fantastic benefit. Those producers who chose to buy extra contract tonnage will be able to take advantage of better utilising their fixed costs and greater flexibility."
Reducing contract haulage payments was also a key consideration, he noted, explaining why the company offered a £5/t premium for the first 40,000t of contract purchased by growers within a 30-mile haulage allowance radius of its York plant.
"Early indications are that we now have the potential to move the factory boundary closer to York," said Mr Bee. This would result in some farmers receiving a lower contact mileage allowance, although this would be offset by reduced transportation costs, he added. *