A simple fixed price for beet looks set to be the preferred option for contract negotiations with British sugar for 2010 and beyond.

That was the message from a meeting of beet growers at the NFU annual conference in Birmingham.

Ninety-eight percent of growers signed up to a fixed-price contract last summer, said NFU sugar board chairman William Martin. “The message I’ve been getting from around the country and today is that if growers are offered a contract in July, you want a price attached and you can decide whether to sign it or not.”

British Sugar is mooting the idea of a cost-plus model although it has said it is too early to enter discussions with the NFU on the idea, sugar adviser Helen Kirkman added.

Last summer’s collective bargaining had changed the relationship between growers and the processor, Mr Martin claimed.

“We don’t know what the arrangements for 2010 will be. We’ve started conversations. British Sugar have made clear they understand that things have changed. Growers understand the collective strength we showed last summer.”

Whether a deal will be struck for more than one year was still an unknown, Mr Martin added. “British Sugar would like three years, but I’m only looking at one year. They have to show us the value in a longer deal.”

Other key points from the meeting:

• Growers should not undermine their collective power by renting land to British Sugar so it can grow its own beet, as it has done for the 2008/9 crop
• Transport allowances are still an issue and the NFU might explore pilot for ex. farm pricing of beet
• Disparity of campaign length principally between Newark and the other factories meant the Late Delivery Bonus scheme needed a review
• “Problem child” Newark needed more investment by British Sugar

• Keep up to date with news from the conference on our NFU conference special report page