Defra tells NFU and British Sugar to resume beet price talks

The government has given a clear direction to British Sugar and the NFU that negotiations over the next season’s sugar beet price must resume.

The NFU is furious that British Sugar, the sole buyer and processor of UK sugar beet, wrote to beet growers last week with a unilateral contract offer of £38/t for next season after talks between the two parties stalled.

NFU president Minette Batters wrote to Defra farming minister Mark Spencer accusing British Sugar of acting like a “monopsony power” and a “deliberate circumvention of the statutory process” for price setting.

See also: NFU demands Defra intervention in sugar beet price row

The NFU urged Defra to exercise its powers under Section 69 of the Food Act to determine the terms of supply for the 2024-25 contract year.

On Tuesday 7 November, Defra released a statement following further discussions with both parties.

A spokesperson said: “There is a well-established process in place to agree the sugar beet price, designed to be independent between both parties, with the government only acting as final arbitrator at the end of the process should no agreement be reached.

“It is very important that all parties involved now continue to follow that process and reach a mutually acceptable outcome.”

NFU Sugar said it was ready to resume negotiations, but has insisted that British Sugar must first retract its current sugar beet offer made to growers outside of the established process, before negotiations can resume.

A union spokesperson said: “We expect British Sugar to adhere to the government’s direction and return to the negotiating table in good faith.”

British Sugar said it had already reached out to the NFU to ensure negotiations can restart immediately.

Its agriculture director Dan Green: “As communicated when we launched our offer, British Sugar remains fully committed to getting a price agreed with the NFU for the 2024/25 beet price negotiations. We therefore welcome the statement from Defra.

“We look forward to engaging with the NFU and following the negotiation and dispute process in line with the Inter Professional Agreement.”

‘Militant mood’ 

The NFU hosted an emergency meeting online on Friday 3 November to discuss the next steps in the beet pricing dispute.

More than 750 NFU members, including large commercial beet growers who supply about 40% of the UK’s sugar beet tonnage, were on the call.

“In nearly 10 years of being involved in sugar, I have never known such a militant mood from the grower base,” said NFU Sugar Board chairman Michael Sly.