UK sugar beet growers offered forward contract option

A forward index-linked sugar beet contract will be launched for the 2027-28 season.

This will allow growers to sell a percentage of their contracted tonnage ahead of annual price negotiations.

An initial pilot will allow growers to sell a total of 50,000t of beet drilled next spring through a futures contract using an online platform.

See also: Why the sugar beet deal could see a reduced 2026 crop area

British Sugar and NFU Sugar have partnered with agri-commodity specialists Czarnikow to provide the service through its app.

Growers will be able to see a forward price set against the October 2027 No.11 contract and can commit to selling and lock in prices when it suits.

Contracts will also take into consideration future UK sterling to US dollar exchange rates.

Sugar beet growers will initially be able to sell up to 10% of their contracted tonnage through forward index-linked contracts as part of the pilot.

Dan Green, agriculture director at British Sugar, said the contract option would give greater choice and flexibility to growers wishing to price some of their tonnage further ahead.

NFU Sugar Board chairman Kit Papworth added: “Farmers are used to being able to forward sell other commodities and this pilot allows growers to do the same for sugar beet.

“While world prices are low now, the market is highly volatile.

“And this scheme will allow growers to lock in prices if market conditions become attractive.”

The global sugar market is currently trading at very low levels,

And a stronger sterling against the US dollar is also having an impact on potential returns for growers.

A fixed discount of £160/t has been agreed for the pilot, although there is no obligation on growers to sell any sugar beet.

Andrew Charlton, head of Europe at Czarnikow, said: “This continued innovation provides UK sugar beet growers more choice and greater forward price visibility.

“We are delighted to broaden our offering to farmers through the [Czarnikow] app in collaboration with the NFU and British Sugar.”