Sugar beet growers will receive lower prices for next year’s crop, reflecting the generally depressed state of the global sugar market.

Price negotiators at NFU Sugar and British Sugar have reached a deal for the 2026/27 sugar beet contract that will see prices cut by about £3-£6/t, depending on the type of contract and market protection producers opt for.

See also: Falling global sugar markets put pressure on domestic prices

The basic one-year fixed price contract will be available at £30/t for up to 65% of the contract.

This compares with £33/t for up to 70% that is in place for the 2025/26 beet crop.

British Sugar is also offering a one-year contract with a guaranteed base price of £25/t for 2026/27, plus a market-linked bonus for up to 100% of the contract.

This compares with a guaranteed £30.70/t plus market-linked bonus in the 2025/26 contract – a drop of £5.70/t in the base price.

A third option for growers is an “index-linked contract” (previously “futures linked”), which is available on up to 50% of the contact – the same as before.

Challenging market

According to Keith Packer, managing director at British Sugar, the industry continues to face challenging market conditions, and this is reflected in the final deal.

“This year’s contract is the product of many months of hard work with NFU Sugar, giving growers much-needed security and certainty at what is a volatile time for farm businesses.”

“We’re offering valuable options which include an interest-free cash advance, a market-linked bonus for a share of the upside when the market is favourable, and an index-linked contract for those with a greater appetite for risk and reward.”

Other elements of the new contract include:

• A “yield protection contract”, featuring a £1/t reduction on the fixed and market-linked bonus contract prices
• A “transport allowance” of up to 60 miles for all factories
• A one-year “contract holiday” for up to 750,000t contract tonnage entitlement, on a first-come, first-served basis
• An interest-free cash advance option, a late delivery payment, and complimentary frost insurance.

Grower choices 

NFU Sugar board chairman Kit Papworth said: “I am pleased we have managed to come to a negotiated agreement with British Sugar for the 2026/27 sugar beet contract.

“This deal offers growers choices to suit individual business circumstances. It balances challenging sugar market conditions with the increasing costs and risks of growing sugar beet in the UK.”

Writing in the NFU’s Beet Brief in June, market insight manager Gareth Forber pointed to growing cane sugar production in Brazil, weaker demand in Asia, and the relative strength of sterling as factors which are weighing down the sugar market.