British Sugar announces plans to close Cantley factory

British Sugar has announced plans to cease beet processing at its Cantley factory in Norfolk at the end of next season, shrinking its operation from four factories to three.

The closure will take effect from the end of February 2027, with the processor citing a need to “improve efficiency, restore competitiveness and support the long-term future of the UK sugar industry”.

See also: Lower beet prices as depressed sugar market hits

Under the plan, British Sugar will concentrate beet processing operations at Bury St Edmunds (Suffolk), Newark (Nottinghamshire) and Wissington (Norfolk).

It insists the three remaining factories have the capacity to produce the same volume of sugar as today, “enabling the business to continue meeting the needs of both retail and industrial customers, and to maintain its market position”.

The existing packaging facilities at Bury St Edmunds, Newark and Wissington will be maintained, with Newark continuing to serve the company’s brown sugar customers.

Review

British Sugar’s managing director, Keith Packer, said: “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.

“We recognise the uncertainty this will create for our colleagues at Cantley, their families and the wider community. Our focus now is to engage openly and responsibly throughout the consultation process.”

The Associated British Foods subsidiary has confirmed that all Cantley growers will be invited to continue growing sugar beet for the 2027-28 campaign, and beyond, and the site will operate as normal throughout the upcoming campaign.

“All employees at Cantley are likely to be affected by the proposal,” said a statement. “The company will now begin consultation discussions with Unite, its recognised union, and other employee representatives.”

At one point, British Sugar operated as many as 18 factories, including in the north of England and in Wales.

Response 

The NFU has expressed its extreme disappointment at the planned closure.

NFU Sugar Board chairman Kit Papworth said: “Growers supplying Cantley have supported the industry for decades and will rightly be very concerned about the proposed closure and potential impact on their farming businesses.

“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.

“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.”

Mr Papworth said it was some consolation that British Sugar had given assurances that no growers will be financially disadvantaged for the 2027/28 crop.

“We are calling for this to be made permanent, to give affected growers the confidence to invest for the long-term future of the sector,” he said, adding that British Sugar should guarantee that UK-grown sugar beet would not displaced by imported beet or cane sugar.