Following recent announcements on the choice of contractual opportunities for 2022, British Sugar has announced that growers in East Anglia can apply for additional tonnes on the 2022/23 one-year contract – with its guaranteed fixed price of £27/t – as well as on the higher-priced multi-year upgrades (fixed at £25/t), and on the Futures-linked variable price contract.
Agronomists and crop consultants with clients in East Anglia interested in growing beet are also welcome to apply for their own contract or discover other growing options on offer.
For beet growers within 28 miles of British Sugar’s factories, a local premium will be added on top of their 2022 guaranteed £27/t one-year & £25/t multi-year upgraded fixed prices.
“The local premium introduced by British Sugar for the 2022/23 crop pays an additional £2/t on top of the base price for growers up to nine miles of their contracted factory, decreasing on a linear scale by 10p/t per mile,” says Harry Mitchell, strategic engagement manager at British Sugar.
“For example, a grower at 15 miles will receive an additional £1.40/t. That’s a potential income of £28.40/t with tonnage on the 2022 one-year contract, and over £29/t with the average late delivery allowance.”
As per British Sugar’s recent announcement, the 2022/23 one-year contract will pay a guaranteed fixed price of £27/t on a zero crown basis. “That’s the equivalent of £27.92/t on average where the previous crown tare deduction and sugar scale terms applied,” adds Harry.
“The one-year price is a 33% increase on the previous year’s price, acknowledging increases in input costs and inflation in alternative crop prices, as well as providing growers with a share of the recent improvements in sugar pricing.
“We’re seeing more confidence in sugar sales, so want to be able to share that upside with growers.”
What’s more, growers with tonnage on the existing 2020/21 and 2021/22 multi-year contracts have the option to upgrade from their existing £21.18/t price to a guaranteed fixed £25/t, subject to committing to an additional contract year, he adds. “These prices are on a zero-crown tare basis meaning that growers are paid for the entire roots of beet they deliver. The £27/t (zero crown) is the equivalent of £27.92 on a crowned basis, which growers are more familiar with from previous years. Similarly, £25/t (zero crown) is the equivalent of £25.85/t on a crowned basis.”
All contract options for 2022 are guaranteed fixed prices with no market-linked bonus.
In addition, a continuation of the Futures-linked variable priced contract has also been agreed. “This gives growers the ability to make their own pricing decisions for a proportion of their contract,” notes Harry.
This will now be open to all growers who will have the option to allocate up to 10% of their tonnage. Futures-linked contracts will be available for a maximum of 30 days from the contract window opening.
Also continuing next year is the £12m Virus Yellows Fund which compensates growers for yield losses due to virus yellows, he adds.
As well as new contractual opportunities, Harry says that British Sugar continues to champion the corner for growers “We’re also continuing to invest in the future of the sugar industry, through science-led advice and guidance from the BBRO, innovation in seed technology, and industry-wide advocacy for plant protection products and future breeding techniques,” he concludes.
Growers in East Anglia looking to can apply for additional tonnes on the 2022/23 one-year contract, the higher-priced multi-year upgrades, or the Futures-linked variable price contract, can do so online via the My British Sugar grower portal.
