A forward index-linked sugar beet contract will be introduced for the 2027–28 season, giving growers the option to sell a portion of their contracted tonnage before annual price negotiations take place, Farmers Weekly reported.
The initiative will begin with a pilot programme allowing farmers to sell a combined total of 50,000 tonnes of beet to be planted next spring through a futures contract on an online platform. The service is being offered through a partnership between British Sugar, NFU Sugar, and agri-commodity specialist Czarnikow via the company’s mobile app.
Under the scheme, growers will be able to view forward prices linked to the October 2027 No.11 contract and decide when to commit to sales, enabling them to lock in prices at a suitable time. The contracts will also factor in expected exchange rates between the British pound and the US dollar.
Initially, participants will be able to sell up to 10% of their contracted tonnage through the forward index-linked contracts as part of the trial.
Dan Green, agriculture director at British Sugar, said the option would provide farmers with greater flexibility and more pricing choices for part of their crop well in advance. NFU Sugar board chairman Kit Papworth noted that while farmers commonly forward-sell other commodities, this pilot extends the same opportunity to sugar beet. He added that despite currently low global sugar prices, market volatility means the scheme could help growers secure favourable rates when conditions improve.
The global sugar market is trading at relatively low levels, and a stronger pound against the US dollar is also affecting potential returns for farmers.
A fixed discount of £160 per tonne has been set for the pilot, though growers are not required to sell any of their beet.
Andrew Charlton, head of Europe at Czarnikow, said the move expands pricing options for UK sugar beet farmers and offers clearer visibility on future prices through the app developed in collaboration with NFU Sugar and British Sugar.
