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New forward index-linked contract for UK sugar beet growers

11 February 2026

UK sugar beet growers will have the chance to trial a new forward index-linked contract option, giving them the ability to contract some of their beet tonnage for the 2027/28 season in advance of annual beet price negotiations. 

The ability to market on a longer-term basis has been created by NFU Sugar, British Sugar, and the agri-commodity and supply chain experts Czarnikow (Cz). 

NFU Sugar Board Chair Kit Papworth said: “Farmers are used to being able to forward sell other commodities and this pilot allows growers to do the same for sugar beet. 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.” 

Dan Green, Agriculture Director, British Sugar, 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.” 

Andrew Charlton, Head of Europe, Czarnikow, said: “This continued innovation provides UK sugar beet growers more choice and greater forward price visibility, and we are delighted to broaden our offering to farmers through the Cz App in collaboration with the NFU and British Sugar.” 

• For the past five years, beet growers have had the option to contract and price some of their beet on a ‘one year’ contract indexed to world sugar prices. The aspiration has always been to offer a contract where growers can transparently view and sell against a forward market price for sugar beet, just as they do for wheat and other major crops. 

• The existing one-year contract allows growers to do this but is limited to pricing beet one year ahead and requires a grower to contract tonnage well before being able to lock in a price. The idea of the forward index-linked contract is to give growers the opportunity to price their beet further into the future. 

• Pricing beet forward will work in a similar way to any other crop – growers will be able to see a forward price, but, unlike the current one-year contract, a grower only commits to sell at the point they want to price the beet. If the price is unattractive, there is no compulsion for growers to contract.  

1.       Growers will be able to see prices on the CZ App platform. The pilot scheme, which is set to be launched on 2 March 2026, 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 $/£ exchange market. It is envisaged that further tranches will be made available in due course.