Bitter sugar dispute ‘could be resolved by government’

The government says it will intervene unless British Sugar and beet growers resolve their increasingly bitter price dispute – but only as a last resort.

It follows deadlocked price talks for the 2024 beet crop which saw the processing giant bypass formal negotiations with NFU Sugar representatives and issue a unilateral contract offer of £38/t direct to farmers.

British Sugar agriculture director Dan Green said: “As well as a high fixed price element, we have built in a mechanism which allows us to pay a market-linked bonus and share any possible upside if sugar prices remain high.

“This would deliver over £40/t in today’s sugar market. “We are confident that this offer is extremely competitive, making beet the most profitable crop on farm and will ensure it remains an attractive crop for growers across the East and East Midlands.”

Outrageous

NFU Sugar chairman Michael Sly said he was outraged, accusing British Sugar of circumventing the negotiation process. He added: “NFU Sugar has not agreed this offer, leaving the validity of any contract made in relation to this offer in doubt.”

Calling for an urgent intervention by Defra farm minister Mark Spencer, Mr Sly said the government should make it clear that contracts formed on the basis of British Sugar’s unilateral offer would be invalid.

In response, a Defra spokesperson said: “Defra has had further discussion with all parties. The government recognises the importance of sugar beet farmers and their vital contribution to UK sugar production.

“We are committed to promoting fairness across the food supply chain, with risk and reward being properly shared. That includes seeing a price agreed for sugar beet that benefits both growers and processors, in the context of the global market.”

Despite British Sugar’s unilateral contract offer, it remained important that both sides continued to follow the formal negotiation process and reached a mutually acceptable outcome, said the Defra spokesperson.