Sugar beet will still be a better performing crop than winter wheat, despite recent restructuring in the industry.

So believes Norfolk farm manager Gary Gray, who has recently bought 2095t of additional contract tonnage for £2/t, having done his financial calculations carefully.

He admits that Beckhithe Farms at Reedham does have the geographical advantage of being only 2.5 miles from British Sugar’s Cantley factory. “If we can’t make it work from here, then it’s difficult to see how anyone can,” he says.

The business decision to expand the sugar beet enterprise has been based on an average beet growing cost of £12.60/t, he reveals.

“That base level means we are still going to get a reasonable margin over and above what we can get from winter wheat.”

Also, wheat yields on the farm this year were a disappointing 8t/ha. “Last year we managed to get 9.8t/ha,” he says. “Our average yield gives us a gross margin of £160/ha for winter wheat, excluding the Single Farm Payment.”

In contrast, he reckons the gross margin from sugar beet will be about £470/ha. “We have produced plenty of ‘C’ quota beet in the past, so we know from first-hand experience that there’s still a profit to be had at £19/t.”

Other considerations for Beckhithe Farms were the opportunity that additional quota presented in terms of the rotation.”We’re looking to grow sugar beet one year in three,” says Mr Gray. “Up until now, it’s been one year in four.”

Sugar beet’s gain will at the expense of winter wheat, he predicts. “We will now be growing three main crops – sugar beet, wheat and maize. But there’ll be less wheat and we’re no longer going to be renting land for potatoes.”

Having 2700 head of beef cattle on the farm also makes a difference and had an influence on the decision-making process, he says.

“We’re using a lot of cattle muck in the rotation, which has a positive effect on soil structure. In order to hit British Sugar’s yield target of 70t/ha, this has to be right.”

The farm has a mixture of soil types, making soil management a priority at all times of year. Contractors are used to lift and cart the beet, but all other operations are carried out by the Beckhithe Farms team.

“We are careful farmers,” says Mr Gray. “And that’s going to take greater prominence with the tighter rotation we will have next year.”

He is confident that 70t/ha can be achieved consistently. “With the new varieties and technical advances that are coming along, sugar beet yields will increase. And apart from the one-off cost of buying the extra tonnage, no other investment has been required.”

One telephone call was all that was needed to secure the deal, he adds. “It has been very straightforward and painless. Obviously we already knew our figures, so we could see the opportunity that this presented.”

For further insight into sugar beet restructuring:

Beet makes a return after 35 years