Written by Charlotte Cunningham
British Sugar and NFU Sugar have concluded negotiations for one-year and three-year sugar beet contracts from 2021, including a ground-breaking new virus yellows assurance fund and an innovative futures-linked contract pilot. Charlotte Cunningham reports. The virus yellows crop assurance fund introduced from 2021 will compensate growers for a proportion of yield losses suffered where a grower has virus yellows present in their crop. This is a three-year, £12 million fund, underwritten by British Sugar covering all new and existing contracts. The one-year contract for 2021 will pay £20.30/adjusted t, with a market bonus triggered when the adjusted EU reference price exceeds €375/t. The bonus would pay growers 10% of the value above this level. The three-year contract for 2021-23 will pay £21.18/adjusted t, with a market bonus triggered when the adjusted EU reference price exceeds €400/t. The bonus would pay growers 25% of the value above this level. The base contract prices are equivalent to those in the 2020 contract. Credible deal In addition, NFU Sugar and British Sugar have agreed to pilot an innovative futures-linked variable priced contract, giving growers the ability to make their own pricing decisions for a portion of their contract. Growers will have access to…
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