Flexible financial incentives are delivering on stakeholder feedback

22 April 2024

Through the Field-to-Factory Partnership consultation process, growers, hauliers and harvesting contractors identified several areas where flexible incentives could deliver benefits to the Campaign for everyone. 2023 marked the first year where these were all on offer.

Early Delivery Allowance

Grower feedback: To incentivise earlier harvesting of sugar beet when yields can be lower than the peak time for harvesting and delivery in October and November

The details: An allowance of up to £4.00 /t for deliveries in early September, decreasing by 20p per day until the end of September.

Advantages to the grower:

• Additional financial support to offset potentially lower yields.
• The ability to have an earlier entry into a following crop.

Advantages to the processor:

• Greater confidence in sugar beet supply early in the Campaign.
• Increased factory output.

Cash Advance

Grower feedback: Some growers harvest and deliver sugar beet earlier than would be optimal to aid business cash flow.

The details: In June, a cash advance of up to 20% of a grower’s expected production is paid. The payment is based on the declared crop area multiplied by the five-year average yield and the contract price.

Advantages to the grower:

• Aids business cash flow ahead of the cereals harvest and sugar beet Campaign.
• Allows growers to plan their sugar beet harvesting and crop marketing strategy to maximise returns.

Advantage to the processor:

• A greater spread of deliveries through the Campaign.

Incentive Payment for Christmas Period Deliveries

Haulier feedback: Hauliers found sourcing staff to meet their delivery requirements over Christmas a challenge.

The details: On Christmas Eve, Boxing Day and New Year’s Eve, hauliers were offered a direct payment of £100 for every load delivered by lorry and £50 for every load delivered by tractor and trailer, up to a maximum of £500 per vehicle per day.

Advantages to the haulier:

• This allows an additional incentive for staff working through the Christmas period.
• To maximise the opportunity to deliver sugar beet in the middle of the Campaign, improving grower satisfaction with their service.

Advantages to the processor:

• Greater confidence in beet supply over the Christmas period.
• Increased factory output.