UK: NFU and British Sugar to unveil study on efficiency
Published: 03/19/2010, 7:19:00 AM
NFU and British Sugar are holding a series of meeting next week to inform beet growers and hauliers on the findings of a sugar beet transport efficiency study conducted during 2009, according to the UK's Farmers Guardian.
The study was jointly commissioned by British Sugar and the NFU and was funded by the East of England Development Agency (EEDA) and the East Midlands Development Agency (EMDA).
Among the study findings were a significant range in haulage rates charged to growers - GBP1.50 (US$2.27) to over GBP7 per metric tonne - and a ‘noticeable lack of formal contractual arrangements between growers and their hauliers'.
The study also found most growers felt transport allowances paid to them did not cover haulage costs, although a significant percentage didn't know the extent of the shortfall.
According to the NFU and British Sugar, efficiency improvements to the tune of GBP3.5 million to GBP8.5 million could be made through a process of rationalisation to reduce current excess capacity, with fewer vehicles, operated by fewer hauliers, offering more competitive and standardised rates to growers.
The suggestion is that British Sugar will operate a streamlined beet haulage model, and will be responsible for planning, coordination and transport of beet from growers' farms into processing sites.
Transport arrangements for delivery of beet from farms to British Sugar's four sugar beet processing factories are included in the new forward-looking beet contract, agreement on which was announced by British Sugar and NFU in February.