Sugar beet price sent to arbitration after talks stall
© Tim Scrivener NFU Sugar and British Sugar have failed to agree a price for the 2027-28 sugar beet crop, with the dispute now heading to independent arbitration.
The arbitration hearing will take place in the second half of October, with a determination required by 30 October 2026.
NFU Sugar Board chairman Kit Papworth said negotiations had started early in the season and had been conducted “in good faith”, but the two sides had different views of the market and growers’ costs.
See also: Farmer Focus: It’s the end of the road for sugar beet
“Unfortunately, we’ve not been able to reach agreement. That is the background to our dispute,” he told Farmers Weekly.
British Sugar agriculture director Dan Green said the company had made “best efforts to reach a fair and timely agreement” and recognised the “frustration and uncertainty” the process could cause growers.
The NFU said British Sugar started the arbitration process in early August. Negotiations are continuing in parallel, and an agreement could still be reached before the arbitrator’s determination.
Last year, the two sides agreed the 2026-27 sugar beet contract by mid-August.
Mr Papworth said the current uncertainty could affect growers’ cropping decisions, particularly as alternative break crops become more attractive.
“This uncertainty doesn’t help anybody,” he said. “It’s important that farmers are able to make decisions for other break crops.”
Strong case
Despite the impasse, Mr Papworth said there remained a strong case for growing beet in the areas where it is suited.
“The price of sugar in the world is going up right now,” he said. “Sugar beet can be a fantastic break crop on high land in the areas where it is grown.
“Although we’re probably losing the Cantley factory this year, there is still a huge demand for British-grown sugar in the UK, and it’s a fantastic crop to grow in those areas – if only we can actually reach an agreement on the price.”
NFU Sugar represents about 2,300 growers, with sugar beet grown across 100,000ha.
