A lengthy and bitter contract dispute between East Anglia's sugar beet farmers and British Sugar has finally been resolved - after an agreement was struck for next year's crop prices.

British Sugar has been locked in talks for months with the National Farmers' Union's sugar board (NFU Sugar), to secure a deal for the 2,300 growers which supply beet to its factories at Cantley and Wissington in Norfolk, Bury St Edmunds in Suffolk, and Newark in Nottinghamshire.

The company's decision to make offers directly to growers while negotiations were still under way in November sparked outrage from union leaders - and further delayed the process.

But both parties have now agreed a deal for the 2024/25 sugar beet contract, including a fixed price of £40 per tonne (the same as this year), or a core price of £38 per tonne plus a market-linked bonus, and a "futures-linked" option for up to 35pc of the contract.

British Sugar and NFU Sugar acknowledged that the negotiation process has "not served the industry well" and have also agreed a "shortened negotiation timeline" which will deliver a final price and contract earlier in the year in future.

British Sugar managing director Keith Packer said: "This negotiation has been my first as managing director of British Sugar and I want to make sure that in the future we all do better for our growers.

"This is why it was important to agree a shorter timeline which will allow both ourselves and NFU Sugar to negotiate to a conclusion for an offer to be with growers by October 30. The changes we have made will ensure that this is in place for next year’s negotiations.

“We are now looking forward to moving on and working together."

Fenland farmer Michael Sly, who chairs the NFU Sugar board, said: “I would like to thank growers for their overwhelming support of NFU Sugar in these very difficult negotiations. It should be clear to everyone that grower unity with NFU Sugar has delivered this deal.

“We will continue to work tirelessly to ensure that our industry is modernised and growers always receive a fair share of the value of the sugar that comes from their beet.”

The agreed contract also includes a yield protection option at a £1 per tonne reduction on the core or fixed contract price, while the cash advance, late delivery allowance and frost insurance options are the same as last year. Growers within 20 miles of any British Sugar factory will also receive a "local premium" of up to £2 per tonne.