Sugar beet growers have the opportunity to sell some of their 2027/28 crop forward – before annual price negotiations.
The chance to trial a new index-linked contract option will enable growers to market sugar beet on a longer-term basis. It has been created by NFU Sugar, British Sugar and the agri-commodity and supply chain experts Czarnikow.
“Farmers are used to being able to forward sell other commodities and this pilot allows growers to do the same for sugar beet,” said NFU Sugar chairman and Norfolk farmer Kit Papworth.
“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.”
Growers have been able to sell beet on a one-year contract – indexed to world sugar prices – for the past five years. But they are still required to contract their tonnage well before being able to lock in a known price.
The idea of the forward index-linked contract will enable growers to sell further forward at a known price – in a similar way to wheat and other major crops. If the price is unattractive, there is no compulsion for growers to contract.
Under the new system, beet growers will be able to see the forward price available. But they will commit to sell only at the point they want to price the beet – unlike the current one-year system.
Greater choice
British Sugar agriculture director Dan Green said: “We’re pleased to launch this pilot contract option. It gives greater choice and flexibility to those growers wishing to price some of their tonnage further ahead.”
The pilot scheme launches on 2 March 2026. It will give growers the opportunity to sell a total of 50,000 tonnes of beet drilled in spring 2027 against the October 2027 No.11 contract and December 2027 sterling-dollar exchange market.
The contract is being offered through the Czarnikow app in collaboration with the NFU and British Sugar. Andrew Charlton, head of Europe at Czarnikow, said it would give UK growers more choice and greater forward price visibility.
Further tranches are expected to be made available in due course.