The agreement reflects the realities of today’s market while aiming to offer growers more control over risk and reward.
Key Contract Options
- Fixed Price Contract
A one-year fixed price is available at £30 per tonne, covering up to 65% of a grower’s tonnage. This offers a secure, predictable return for a significant proportion of the crop.
- Guaranteed Base + Market-Linked Bonus
An alternative one-year contract sets a guaranteed base price of £25 per tonne, with additional earnings possible through a market-linked bonus, covering up to 100% of the tonnage.
- Index-Linked Contract
Growers can also opt for an index-linked contract for up to 50% of their tonnage, giving greater alignment with future sugar market movements.
Additional Support for Growers
- Yield Protection: A £1/t reduction applies across both the fixed and market-linked contracts, helping to offset variability in crop performance.
- Transport Allowance: A transport allowance is available for deliveries up to 60 miles from all factories.
- Contract Holiday: A one-year contract holiday option is available for up to 750,000 tonnes of Contract Tonnage Entitlement (CTE), allocated on a first-come, first-served basis.
- Extra Measures: Interest-free cash advances, late-delivery payments and complimentary frost insurance add further layers of support for growers.
Market Context
The new contract price represents an adjustment from the previous year, reflecting the current pressure on the global sugar market. While this season’s fixed price is lower than last year, the broader package of measures is designed to balance financial stability with opportunities for growers to benefit from market improvements.
The 2026/27 contract provides several clear pathways: security through fixed pricing, the potential for higher returns via a market-linked structure, or the flexibility of an index-linked approach. Together with additional support measures such as yield protection, transport allowances and frost insurance, the package aims to help growers manage risk while maintaining confidence in beet production.
Each farm business will have different needs, so it is worth reviewing the contract options in detail to determine the best balance between stability and opportunity for the season ahead.
