Letter to growers - update from Cereals
Letter sent to all growers following the Chairman's update at Cereals.
Dear Grower
For those of you unable to join us at the Cereals event, I enclose a summary of the issues raised during our seminars.
IPA Negotiations
The NFU made its proposal for the 2010 beet contract in April. This sets out growers' requirements from the next agreement and our vision for the industry as a whole. We look forward to British Sugar's response.
To recap, the new IPA must:
- Provide proper compensation for the risks and losses associated with longer campaigns which are currently incurred by growers;
- Pay growers for the full value of crowns and encourage growers to deliver the whole crop to the factory;
- Offer a beet price that provides reassurance to growers and triggers fresh investment.
The consensus amongst growers is that the NFU should hold all contracts. The NFU has arrangements in place to take in all contracts.
British Sugar growing beet
The NFU continues to oppose this 'self-grow' practice. The best means of stimulating confidence and generating adequate beet supply is by paying growers the right price to produce it, allowing the processor to concentrate on what it does best. We continue to emphasise this in our discussions with British Sugar.
Price formula
British Sugar would like to explore a formula for fixing the beet price. We have agreed to look at options. However, the NFU cannot support any model that fails to take account of costs and profitability of the whole industry. It cannot be solely focussed on grower costs.
The NFU will update you on the progress of our discussions.
Yours Sincerely
William Martin
Chairman, NFU Sugar
