Brawley, California, October 21, 2025
News Summary
The Spreckels Sugar Co. plant in Brawley, California, will close at the end of the processing year, marking the end of sugar beet production in the state. This closure, announced by its owner, Southern Minnesota Beet Sugar Cooperative, is expected to eliminate approximately 700 jobs and result in significant economic losses for the region. The decision follows long-term financial challenges and is set to impact 28,000 acres of contracted sugar beet farming.
Brawley, California – The closure of the Spreckels Sugar Co. plant, announced by its owner, Southern Minnesota Beet Sugar Cooperative (SMBSC), marks the end of sugar beet production in California, eliminating the last sugar beet factory in the state. This closure will take effect at the end of the current processing year, after March, and is expected to result in the loss of approximately 700 jobs in the region.
Imperial County leaders, alarmed by the impending closure, declared a state of economic emergency on September 9. Supervisor Peggy Price reported significant economic losses, including 249 full-time jobs, $16.7 million in payroll, and a reduction of $28 million in annual economic activity.
A comprehensive assessment of the facility indicated a combination of long-term financial and operational challenges that led to this decision. Although the plant, operational since 1947, has a rich history in California’s sugar beet industry, the current market conditions make its continuing operation unfeasible. The closure is particularly troubling as it impacts 28,000 acres of contracted sugar beet farming, which employs around 400 workers directly.
Additionally, the operations of the Brawley plant will shift to a more efficient facility in Renville, Minnesota, due to rising production costs and declining sugar prices. This transition threatens not just direct jobs but also ancillary positions, such as truck drivers and farmworkers, as well as businesses tied to the sugar industry, including those that provide fertilizer and seeds.
In 2019, sugar beets contributed $1.18 billion to U.S. cash receipts from sugar farming, with yields in Imperial County averaging 40 tons per acre. However, once the Brawley plant closes, federal regulations will prevent the processing of sugar beets at other facilities, effectively ending sugar beet farming in California due to the absence of alternative processing options.
The situation compounds existing economic issues in Imperial County, which has consistently faced the highest unemployment rate in California over the years. Local growers and officials have expressed frustration over the lack of timely communication regarding the closure decision and are now scrambling to find solutions.
Despite SMBSC’s investment of nearly $100 million over the past decade to modernize the Brawley facility, achieving financial viability has proven impossible. The closure aligns with a broader trend of sugar factory shutdowns across the western United States, spurred by unfavorable market conditions and federal policies. As the community seeks alternative crops, limited options are available, leading to concerns that local fields may remain fallow, thereby decreasing employment further.
Key Economic Impacts
- Job Losses: Approximately 700 jobs at risk
- Payroll Loss: $16.7 million
- Economic Activity Loss: $28 million annually
- Acreage Affected: 28,000 acres of sugar beet farming
Historical Context
California’s sugar industry once thrived, producing 50% of the nation’s beet sugar in the 1950s. However, in recent years, the industry has faced numerous challenges leading to declines in operations and productivity.
Future Outlook
As the community explores alternative agricultural crops, the transition remains uncertain, with fears of long-term economic decline in the already struggling region.
FAQ Section
What is the reason for the closure of the Spreckels Sugar Co. plant?
The closure was announced due to long-term financial and operational challenges.
How many jobs will be lost due to this closure?
The closure is expected to result in the loss of approximately 700 jobs.
What economic impact will the closure have on Imperial County?
It will eliminate $16.7 million in payroll and reduce annual economic activity by $28 million.
How many acres of farming are affected by the plant’s closure?
The closure will affect 28,000 acres of contracted sugar beet farming.
What is the historical significance of the Spreckels Sugar Co. plant?
The plant has been operational since 1947 and is part of a nearly century-old history in California’s sugar beet industry.
What will happen to sugar beet farming in California after the closure?
Federal regulations will prevent the processing of sugar beets in other facilities, effectively ending sugar beet farming in California.
Key Features Chart
| Feature | Details |
|---|---|
| Plant Closure Date | End of current processing year, after March |
| Job Losses | Approximately 700 |
| Financial Impact on County | $16.7 million in payroll, $28 million in annual economic activity |
| Acreage Affected | 28,000 acres |
| Historical Operations | Operational since 1947 |
| National Contribution of Sugar Beets (2019) | $1.18 billion |
Deeper Dive: News & Info About This Topic
- Calexico Chronicle
- Wikipedia: Sugar Beet
- Los Angeles Times
- Google Search: Spreckels Sugar Co closure
- SFGate
- Encyclopedia Britannica: Sugar Production
- The Desert Review
- Google News: Spreckels Sugar closing
- IV Press Online
- AgWeek
- KYMA
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