Brawley, California, October 21, 2025
News Summary
The closure of the Spreckels Sugar Co. plant in Brawley signals the end of sugar beet production in California, eliminating the last sugar beet factory in the state. Announced by the Southern Minnesota Beet Sugar Cooperative, the closure will result in significant job losses, affecting around 700 workers, and an estimated annual economic impact of $28 million. The decision reflects financial challenges and will also halt operations for contracted sugar beet farming across 28,000 acres, deeply impacting the local economy.
California – The closure of the Spreckels Sugar Co. plant in Brawley marks the end of sugar beet production in the state, eliminating the last sugar beet factory. This decision, announced by the Southern Minnesota Beet Sugar Cooperative (SMBSC), will take effect at the end of the current processing year after March. The decision threatens hundreds of jobs and has spurred officials in Imperial County to declare a state of economic emergency.
Imperial County Supervisor Peggy Price reported that the closure will result in the loss of 249 full-time jobs, approximately $16.7 million in payroll, and an estimated $28 million in annual economic activity. A comprehensive evaluation concluded that long-term financial and operational difficulties were significant factors in the plant’s closure.
The Brawley plant began operations in 1947, contributing to a nearly century-old legacy of sugar beet production in California. The state’s sugar industry once thrived, producing 50% of the nation’s beet sugar by the 1950s. However, the recent closure is expected to result in the loss of around 700 jobs, heavily impacting the local economy and agricultural landscape.
In addition to job loss, the closure will affect 28,000 acres of contracted sugar beet farming, which directly employs approximately 400 workers. Operations at the Brawley plant will be moved to a more efficient factory in Renville, Minnesota, primarily due to rising production costs and declining sugar prices.
The impact of the closure extends beyond direct job loss, as ancillary positions for truck drivers, farmworkers, and businesses supplying fertilizer and seeds are also at risk. The sugar beet sector contributed $1.18 billion to U.S. cash receipts from sugar farming in 2019, with yields in Imperial County averaging 40 tons per acre.
Once the Brawley plant closes, federal regulations will prevent the processing of sugar beets at alternative facilities in California, effectively ending sugar beet farming in the state due to a lack of processing options. This closure comes at a challenging time for Imperial County, which has consistently recorded the highest unemployment rate in California for years. Local leaders express concern that the closure exacerbates existing economic hardships.
Many local growers and officials are frustrated by the timing of the closure announcement, as they were not informed sooner. They are now urgently seeking solutions to offset the significant economic fallout. Despite SMBSC investing nearly $100 million over the past decade to modernize the Brawley facility, achieving financial viability proved unattainable.
The closure of the Spreckels Sugar Co. plant aligns with a broader trend of sugar factory closures across the western United States, which have been influenced by market conditions and federal policies. Community members are exploring alternative crops, but options remain limited, leading to fears that agricultural fields may go fallow, further reducing local employment opportunities.
Economic Impact Summary
- Closure of Spreckels Sugar Co. plant results in the loss of approximately 700 jobs.
- Estimated loss of $16.7 million in payroll and $28 million in annual economic activity.
- Closure affects 28,000 acres of sugar beet farming, employing approximately 400 workers.
Historical Context
- Spreckels Sugar Co. plant began operations in 1947.
- California produced 50% of the nation’s beet sugar in the 1950s.
Market Conditions
- Operations shifting to a more efficient facility in Renville, Minnesota, due to rising costs.
- Federal regulations prohibit the processing of sugar beets in other state facilities after closure.
Key Features Table
| Feature | Description |
|---|---|
| Closure Date | End of current processing year, after March |
| Job Loss | Estimated 700 jobs lost |
| Economic Loss | $16.7 million in payroll and $28 million in activity |
| Acreage Affected | 28,000 acres of sugar beet farming |
| Historical Significance | Last sugar beet factory in California |
FAQ
What is the main reason for the closure of the Spreckels Sugar Co. plant?
The closure is due to long-term financial and operational challenges, making the plant financially unviable.
How many jobs will be lost due to the plant’s closure?
The closure is expected to result in the loss of approximately 700 jobs.
What is the economic impact of the closure?
The closure will lead to a loss of about $16.7 million in payroll and $28 million in annual economic activity.
When will the closure take effect?
The closure will take effect at the end of the current processing year, after March.
How does the closure affect sugar beet farming in California?
The closure marks the end of sugar beet production in California, as there are no other processing options available in the state.
Deeper Dive: News & Info About This Topic
- Calexico Chronicle
- Wikipedia: Sugar Beet
- Los Angeles Times
- Google Search: Spreckels Sugar Co closure
- The Desert Review
- Google Scholar: Sugar Beet Production California
- SFGate
- Encyclopedia Britannica: Sugar Production
- Farm Progress
- Google News: California sugar beet facility closure
Author: STAFF HERE HUNTINGTON BEACH
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