British Sugar plans to close factory in eastern England
British Sugar plans to close factory in eastern England LONDON, July 21 (Reuters) - British Sugar is proposing to close its beet processing factory in Cantley in eastern England from the end of February next year, it said on Tuesday, citing factors including low sugar prices and high energy costs.
The company, a unit of Associated British Foods ABF.L, said it would be able to meet demand from its three remaining factories in Bury St Edmunds, Newark and Wissington.
"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," British Sugar’s Managing Director Keith Packer said in a statement.
Sugar consumption is declining across Western Europe due partly to higher taxes on sugary soft drinks, while the deregulation of the sector in the European Union in 2017 has left producers more exposed to competition from imports.
"Sadly, we are seeing sugar beet factories around Europe closing – which is a consequence of over-capacity following deregulation in 2017 when the EU transitioned from a protected, quota-based system to one exposed to international sugar markets," Kit Papworth, chair of the National Farmers' Union's Sugar Board, said.
"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."
(Reporting by Nigel Hunt; Editing by Jan Harvey)
((nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net))