Beet outgoers scheme disappoints

By Andrew Shirley

WITH less than a month to run, British Sugars beet outgoers scheme has been branded a disappointment by some quota brokers.

BS reports that only 300,000t of contracts have been exchanged under the scheme, which aims to weed out non-active quota holders and address regional imbalances in beet production.

“The result wont be the structural changes the sugar industry needs,” said Duncan Clark of Lincolnshire broker DCFM.

“The amount traded so far doesnt even cover the 10% of producers who no longer grow. It seems a lot of growers dont have much confidence in the future.”

Henry Denchfield, of fellow Lincolnshire agent JH Walter, reckoned British Sugar has made a mistake with its timing.

“It wont achieve what they want in just five weeks, especially when they coincide with harvest which is when farmers are busiest.”

Prices seem to have stabilised, with most brokers reporting trade steady at around 30/t.