NFU Sugar to challenge Defra stance on beet pricing row

NFU bosses are holding discussions with Defra ministers urging them to use their powers to intervene in the ongoing sugar beet pricing row.

The NFU and British Sugar remain at loggerheads over the beet price for the 2024-25 season – despite negotiations starting in June, they have failed to reach a breakthrough.

British Sugar has offered beet growers the opportunity to contract with them at what it says is a competitive beet price of £38/t.

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

But the NFU is incensed that the sugar processor made this offer to its 2,300 growers early last week while negotiations were still going on. The offer is less than the £40/t British Sugar paid out for the current season and the union says the global market for sugar is buoyant.

Defra issued a statement on Friday 3 November saying “setting prices is not within the government’s remit”.

NFU Sugar bosses immediately challenged the statement, pointing out that unlike other crops, Defra does have the power to intervene on beet pricing under section 69 of the Food Act when the two parties (the NFU and British Sugar) cannot agree a price.

Defra released an updated statement on Monday 6 November which said: “We are aware of ongoing negotiations and are in touch with the relevant parties. We are considering what action may be needed as part of the dispute resolution process.

“We recognise the importance of sugar beet farmers and their vital contribution to UK sugar production. It is important that farmers are paid a fair price for their product while also keeping the price of beet sugar competitive.”  

The NFU held an emergency meeting on Friday afternoon to discuss the next steps in the beet pricing dispute.

NFU Sugar Board chairman Michael Sly told Farmers Weekly about 750 farmers, 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 Mr Sly.

“I’m not just talking about small-scale growers, I’m talking about commercial businesses with yields in the top quartile of our UK agricultural industry. It is an unfortunate set of affairs, but we are where we are.”

NFU demand

NFU president Minette Batters wrote to Defra farm minister Mark Spencer on Friday, calling on the government to step in and exercise its powers under the Food Act to “determine the terms for the supply of sugar beet for the 2024-25 contract year”.

Farmers Weekly understands British Sugar made no contact with the NFU over the weekend.

British Sugar says it remains committed to working through the negotiation process with the NFU and it hopes to conclude a price agreement swiftly.