British Sugar’s plan to close one of its four processing factories has triggered concerns among farmers it will cut its use of domestic sugar beet.
Under new proposals, ABF-owned British Sugar will close its Cantley site and concentrate processing at its three other factories. It said these factories had the capacity to produce the same volume of sugar as today and could continue to meet the needs of both retail and industrial customers.
The proposal follows a review of the business and is intended to “improve efficiency, restore competitiveness and support the long-term future of the UK sugar industry”.
But as the UK’s sole buyer of domestic sugar beet, some farmers are concerned the closure will mean British Sugar reduces its commitment to buying domestically grown beet.
“This is a critical moment for the future of UK sugar beet. Growers need certainty,” said Kit Papworth, chair of the National Farmers Union sugar board.
“NFU Sugar is therefore seeking a public commitment from British Sugar that UK-grown sugar beet is not displaced by imported beet or cane sugar.”
Papworth said sugar beet factories around Europe are closing due to “over-capacity following deregulation in 2017 when the EU transitioned from a protected, quota-based system to one exposed to international sugar markets”.
“We believe this closure is also a consequence of government trade policy in allowing greater quantities of duty-free sugar to be imported into the UK,” he added.
British Sugar’s MD Keith Packer said all Cantley growers will be invited to continue growing sugar beet through to 2028 and the factory will continue to operate as normal during the consultation process.
“This proposal has not been taken lightly. It follows a thorough review of the business and reflects a combination of external pressures, including low average European sugar prices, high energy costs and a market-wide, long-term gradual decline in volumes over time.”
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