Dear Grower

2024/25 Sugar Beet Contract - Guaranteed £37.50 Per Tonne Minimum Price

As this year's sugar beet Campaign gets into full swing, I know you will be planning your crop rotations for next year.  I wanted to update you
on British Sugar's current offer for the 2024/25 year, to give you confidence in choosing beet in your cropping plans.

We know that last year you were facing a sharp increase in agricultural costs, and that competitor crops were offering attractive margins
relative to beet. So, for 2023/24, we increased the beet price by 48% to £40 a tonne and offered a yield protection product to help you manage
risk in your business. We did this to ensure you received a fair price, offering a good margin, as well as giving you choice in how you built
your contract to fit with your own circumstances.

Since the beet price was set last year, thankfully, total grower input costs have reduced; notably fertiliser by 50%¹ . At the same time,
prices of other crops have also fallen with the wheat price reducing by 30%, and OSR by 35%² . Despite these changes we are keeping our fixed
price element as high as we can for 2024/25 because we want beet to remain a financially attractive part of your rotation, encouraging you
to invest in beet for the future.

For 2024/25 we are aiming to offer you a fair deal that, like this year, builds a good margin for you as well as sharing any sugar market upside
we may see. So far, we have not been able to agree a deal with NFU Sugar, but we wanted you to know that our current offer to them
guarantees that the minimum price you will receive for beet will be £37.50 a tonne.

Sugar prices are high at the moment and we want to share any pricing upside with you. But sugar beet planted in Spring 2024 is only sold as
sugar between October 2024 and September 2025, and we have not agreed many sales contracts for that period yet. We simply can't take all the
sugar price risk in what is a very volatile market.

So, we have designed a mechanism which allows us to pay you a market-linked bonus when pricing is agreed, and we know that we have had
a reasonable crop. If sugar markets in 2024/25 are the same as today, we want to give you a top-up, taking the overall price of your beet crop to
above £40 a tonne. You can also ensure a minimum guaranteed income through opting for our yield protection product, and we offer a
futures-linked contract if you want more pricing risk.

We are working hard with NFU Sugar to agree an offer which we can jointly present to you. While we continue to work on that, we are
confident that our current offer makes our crop a compelling mix of high rewards and managed risks, and we hope that your cropping plans will
include beet for 2024/25.

If you would like to talk to us about our indicative offer above, please get in touch. You can contact your British Sugar Account Manager or call
British Sugar's Farm Support Team on freephone 0800 090 2376. We'd be happy to help you make cropping decisions.

Yours sincerely,

Daniel Green
Agriculture Director