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Sugar beet £40/t with options for Yield Protection Cover and cash advance
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As the sole processor of the UK’s beet sugar crop, we work in partnership with over 2,500 growers and our customers to deliver a world-class product that is made to the highest standards every day. We are the leading producer of sugar for the British and Irish food and beverage markets, processing around eight million tonnes of homegrown sugar beet and producing up to 1.4 million tonnes of sugar each year.
Sugar beet growers are being offered £40/t for the 2023/24 contract year, which represents a 48% price increase on last year, with the choice to purchase Yield Protection Cover and opt-in to a 20% cash advance paid in June 2023.
British Sugar offers £40/t for 2023/24 contract with option to purchase Yield Protection Cover and opt-in to 20% cash advance © British Sugar
The £40/t price reflects higher input costs and the alternative crop market, and British Sugar believes this offer is competitive and provides choice, security and profitability at an extremely challenging time.
Growers are welcome to apply for additional tonnes on the 2023/24 contract and the 2023/24 Futures-linked contract.
Yield Protection Cover
Growers can choose to opt-in to a new ground-breaking risk mitigation option, should they wish to reduce the yield risk of their contract.
Yield Protection Cover is designed to mitigate the risk growers face, regardless of the cause, for example, Virus Yellows, Cercospora, drought, or any other cause of yield loss.
The cover, available to purchase at a cost of £1.50/t, will guarantee a payment for 80% of a grower’s Contract Tonnage Entitlement or their five-year average yield multiplied by area sown, whichever is lower.
Cash advance
British Sugar is offering growers a choice to opt-in to a 20% cash advance on the 2023/24 crop, paid in June 2023, on receipt of the 2023/24 Crop Area Declaration.
The cash advance is based on the 2023/24 Crop Area Declaration and calculated on grower’s five-year average yield. It will equal 20% of a grower’s expected production, based on the declared crop area multiplied by the five-year average yield, at a rate of £40/t.
Futures-linked variable price contract
A Futures-linked variable priced contract is available for the 2023/24 crop year, providing growers with the ability to make dynamic pricing decisions for a portion of their contract.
The beet price under this contract will fluctuate with market movements every 15 minutes, with growers securing their price via Czarnikow’s pricing platform, Czapp.
All growers are eligible for this contract and have the option to allocate up to 20% of their total Contract Tonnage Entitlement (CTE) including any additional tonnes requested.
Revised higher prices for Multi-Year contracts
Growers with tonnage on Multi-Year contracts have the option to upgrade to an enhanced price of £40/t if they contract for 2024/25.
Growers who choose not to contract for 2024/25 will still benefit from an increased base contract price of £32/t, as British Sugar wishes to recognise inflationary pressures for growers on the Multi-Year contracts.
Local Premium
British Sugar is offering a Local Premium for growers up to 20 miles from the nearest factory (contract distance). Starting at £2/t at one mile, the premium reduces on a linear scale down to 10p/t up to 20 miles. The Local Premium applies to all contracts running for the 2023/24 season.
Contract Offer now open
The Contract Offer window is now open and existing growers are invited to submit their 2023/24 offer.
Farmers in East Anglia interested in growing beet are also welcome to apply for their own contract or discover other growing options on offer.
2022/23 Contract
- One-year: £27/t zero crown (equivalent of £27.92/t on average where the previous crown tare deduction and sugar scale terms applied)
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