Sugar beet growers across the UK will have the chance to trial a new forward index-linked contract option which will allow them sell their tonnage in advance of annual price negotiations, according to the National Farmers’ Union (NFU).
The pilot scheme, which will be launched on March 2, 2026, will enable growers to contract some of their beet tonnage for the 2027/2028 season, aiming to offer greater flexibility, price transparency and an opportunity to manage market risk more effectively.
The contract has been developed by NFU Sugar in partnership with British Sugar and agri-commodity and supply chain experts Czarnikow (CZ), who will allow growers to access live pricing information through the CZ trading platform app.
Under the pilot, farmers will be given the opportunity to sell a total of 50,000t of sugar beet drilled in spring 2027 against the October 2027 No.11 contract and December 2027 $/£ exchange market, with further tranches expected to be made available in due course.
NFU
NFU Sugar board chair, Kit Papworth said: “Farmers are used to being able to forward sell other commodities and this pilot allows growers to do the same for sugar beet.
“While world prices are low now, the market is highly volatile, and this scheme will allow growers to lock in prices if market conditions become attractive.”
The pilot scheme builds on the existing one-year index-linked contract, which allows growers to price beet based on global sugar rates and the sterling to dollar exchange rate.
However, the new forward contract goes a step further by allowing growers to view prices before committing tonnage, enabling them to lock in prices further into the future.
Unlike the current system, growers will only commit to contracting when they chose to price their beet, meaning there is no obligation to sell if market prices are unattractive.
Prices will reportedly update every 15 minutes on the CZ app, which will improve price transparency and decision-making for growers, according to the head of Europe at CZ, Andrew Charlton.
Scheme
Speaking on the pilot, Charlton added: “This continued innovation provides UK sugar beet growers more choice and greater forward price visibility, and we are delighted to broaden our offering to farmers through the CZ app in collaboration with the NFU and British Sugar.”
NFU noted that the scheme is likely to appeal particularly to growers interested in actively managing price risk.
Uptake and feedback during the pilot phase will help shape how the model is developed in future seasons.
Growers will be able to contract beet at any time up until the contracting window for the 2027/28 crop closes, with pricing available either immediately after novation is complete or up to one month before the relevant futures price expires.
