29 June 2011

2012 Sugar Beet Crop Contracting Starts


The 2012 sugar beet crop contracting round has started with growers receiving offer documents and gaining access to online contracting, on Thursday 30th June 2011.

British Sugar and the NFU have announced the contract beet price for the 2012 crop and the availability of an extra 500,000 tonnes of industrial beet contract for the 2012 season.

Also, a major step forward for the industry is our agreement to end manual crowning in the tarehouse (whole beet delivery).  This removes an area of historical concern for growers and will help drive higher beet yields in the UK.

Contract Tonneage (CTE) - Headlines:
  • CTE beet price for 2012 has been fixed at £27.53 per tonne
  • This is approx £4/t higher than the 2011 price (+£1/t due to input cost increases, +£1/t due to exchange rate differences and +£2/t due to increased forward wheat prices)
  • The beet pricing mechanism is designed to react to market conditions, cover growing costs and overheads and provide growers with a fixed competitive beet price at the point of contracting
  • Note: 2.5% additional CTE will also be issued to all growers within this offer to bring CTE in-line with quota.

Industrial Tonnage ('ICE') - Headlines:

  • New Industrial Contract Entitlement is available in 2012 at a fixed £26.50 per tonne
  • 500,000 tonnes available
  • Fixed 3 year entitlement at the grower's option
  • One of the best industrial contracts in the EU - future price linked to CTE mechanism
  • The pricing will be set annually, at the same time as CTE, and linked to the CTE price.

Transport Initiative

  • Following a successful pilot scheme at Wissington and Newark factories, the scheme will be available to growers delivering to all four factories from the next campaign
  • The scheme remains voluntary but enables growers to access a 'no cost' option for delivery of their beet crop to British Sugar's factories
  • In addition, growers can also access a harvesting service at very competitive rates with payment deducted from the grower's account on delivery of the beet.

Whole Beet Delivery
 
  • From the 2011 campaign, manual crowning in the tarehouse is to cease
  • Replaced by a fixed crown tare adjustment of 6.77%
  • Excellent opportunity to increase yields by up to 5%.  Growers will receive the benefit of delivering the whole beet
  • All beet material in excess of 6.77% tare factor will in future be paid at the full beet price, including haulage and late delivery allowance.

Commenting on the start of the contracting round, Colm McKay, British Sugar's Agriculture Director, said: "It is good to see the agreed pricing mechanism in action and reacting to market conditions.  Unlike any other crop, the mechanism insulates growers from input cost inflation and delivers certainty via a fixed price at the point of contracting."

William Martin, NFU Sugar Chairman, added: "Working closely together, we have delivered a number of positive initiatives including the beet pricing mechanism, transport and harvesting scheme, industrial beet contracts and whole beet delivery."

Further information

Robin Limb
British Sugar
01733 422106
07850 369839
robin.limb@britishsugar.com

Helen Kirkman
NFU Sugar
02476 858614
helen.kirkman@nfu.org.uk

Lee Abbey
NFU Sugar
02476 858618
lee.abbey@nfu.org.uk

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