British Sugar and the NFU have agreed an enhancement to the 2011 sugar beet contract that will benefit all growers and allow them to increase their sugar beet enterprise.

Following a review by British Sugar of the volume of crop required for 2011, an increase in price has been agreed for growers’ production of non-quota beet.  This will allow growers to plant an increased area and benefit from a guaranteed and improved price for a proportion of their non-quota beet. Under the agreement, the first 20 per cent of deliveries in excess of contracts will receive a price of £21/tonne (plus freight and late delivery allowance). This agreement covering non-quota (“surplus”) beet is similar to those used in some Continental markets.  The increase is very attractive compared to the current season interim price of £13/tonne plus freight and late delivery allowance for non-quota beet.

The improved offer is due to increased exports for non-quota sugar during 2009/10, an improved biofuel market, and revised crop yield forecasts; all of which provides an excellent opportunity for all growers to expand their production during 2011, and expand production across all factory sites during 2011.

This opportunity is only available to growers who have a contract for 2011, but anyone without a contract can still lease or purchase tonnage via the normal leasing and transfer schemes, deadline for which is October 31 2010. Growers wishing to plant additional area to take full advantage of this new arrangement need to increase their seed orders immediately, as there will be no guarantee of extra seed availability beyond November.