After a prolonged period of negotiation—and with the prospect of independent arbitration—British Sugar and NFU Sugar have agreed on the contract for the 2027/28 sugar beet crop. The announcement provides growers with long-awaited clarity, but the key question remains: is the offer strong enough to keep sugar beet in the rotation?

What is being offered?
• A one-year fixed price of £28.50/t for up to 50% of contracted tonnage.
• A guaranteed base price of £25.50/t, plus a market-linked bonus, for up to 100% of the contract.
• An index-linked option for up to 50% of contracted tonnage, calibrated to begin at £25.50/t.
• Yield protection at a £0.90/t reduction on the fixed and market-linked bonus prices.
• Transport allowance for up to 60 miles for all factories, extended to 75 miles for former Cantley growers.
• An interest-free cash advance, late-delivery allowance and complimentary frost insurance.

The market-linked bonus will be triggered when British Sugar’s average ex-works white sugar selling price exceeds €560/t, with growers receiving 25% of the value achieved above that level. Together with the index-linked option, this gives businesses flexibility to divide tonnage between greater price certainty and exposure to a stronger sugar market.

A fair deal—or another squeeze on margins?
The range of options is welcome, particularly for growers who want to manage price and production risk differently. However, the fixed price is below the £30/t available for the 2026/27 crop, and the cost and risk of growing beet remain significant. Seed, fertiliser, sprays, harvesting, labour and, not least, potential soil damage must be considered alongside the headline price.
For some businesses, reliable yields, proximity to a factory, an early cash advance and a good operational fit may still make beet an important break crop and a source of cash flow. For others—particularly those facing lower yields, long haulage distances, difficult lifting conditions or stronger alternatives—the margin may no longer justify the exposure.

Will you still be growing?
Before committing tonnage, growers should test each contract option against realistic yield assumptions and the full cost of production—not just the best-case outcome. The right answer will vary from farm to farm, but the announcement is likely to prompt difficult conversations about rotations and risk.
This decision is further complicated by the establishment challenges currently affecting other crops in the rotation. Oilseed rape remains vulnerable, with some crops being written off due to cabbage stem flea beetle attack. Difficult seedbed conditions and lack of rain are also leaving winter cereal crops patchy and slow to establish, while black grass is taking over. Where these alternative break and early-drilled cereal crops are proving risky, sugar beet may still retain an important place in the rotation—but only if its returns adequately reward the cost and production risk involved.

Will the new 2027/28 contract encourage you to continue growing sugar beet, reduce your area, or leave the crop behind altogether? I would be interested to hear how the figures stack up for your business.

If you would like to discuss the options and how they could affect your business, please get in touch.

Guy Bicknell
Wilson Wraight LLP