Sugar beet growers are being offered £40/t for the 2023/24 contract year, representing a 48% price increase on last year, with the option to buy protection cover from the return and opt for a 20% cash advance paid in June. 2023.
The £40/t price reflects higher input costs and the market for alternative crops, and British Sugar believes this offer is competitive and offers choice, security and profitability at an extremely difficult time.
Producers are advised to request additional tonnes on the 2023/24 contract and the 2023/24 futures contract.
Performance Protection Coverage
Producers can choose to subscribe to a revolutionary new risk mitigation option if they wish to reduce the performance risk of their contract.
Yield protection coverage is designed to mitigate the risks that growers face from whatever cause, such as viral yellows, Cercospora, drought or any other cause of yield loss.
The hedge, available to buy at £1.50/t, will secure a payment of 80% of a grower’s contractual tonnage entitlement or five-year average yield multiplied by the area sown, depending on the lowest value.
British Sugar is offering growers the choice of opting for a 20% cash advance on the 2023/24 crop, paid in June 2023, upon receipt of the 2023/24 acreage statement.
The cash advance is based on the 2023/24 acreage declaration and calculated on the producer’s five-year average yield. It will be equal to 20% of a grower’s expected production, based on the declared acreage multiplied by the five-year average yield, at a rate of £40/t.
Variable Price Variable Futures Contract
A future-linked variable price contract is available for the 2023/24 crop year, providing growers the ability to make dynamic pricing decisions for part of their contract.
The price of beets under this contract will fluctuate with market movements every 15 minutes, with growers setting their price through Czarnikow’s pricing platform, Czapp.
All producers are eligible for this contract and have the option of allocating up to 20% of their total Contract Tonnage Entitlement (CTE), including additional tonnes requested.
Revision of higher prices for multi-year contracts
Producers whose tonnage is under multi-year contract have the option to switch to an improved price of £40/t if they contract for 2024/25.
Producers who choose not to contract for 2024/25 will still benefit from an increased base contract price of £32/t, as British Sugar wants to recognize inflationary pressures for producers on multi-year contracts.
British Sugar offers a local premium for growers up to 20 miles from the nearest factory (contract distance). From £2/t to a mile, the premium is reduced on a linear scale down to 10p/t up to 20 miles. The local bonus applies to all current contracts for the 2023/24 season.
Contract offer now open
The contract offer window is now open and existing producers are invited to submit their 2023/24 offer.
East Anglia farmers interested in growing beets are also welcome to apply for their own contract or check out other growing options on offer.
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