Brawley, California, October 21, 2025
News Summary
The Spreckels Sugar Co. plant in Brawley, California, is closing, ending nearly a century of sugar beet production in the state. This closure, effective at the end of the current processing year, will result in the loss of approximately 700 jobs and significant economic impacts, including $16.7 million in payroll and $28 million in annual economic activity. Local leaders have declared a state of economic emergency as the closure shifts operations to a facility in Minnesota, further exacerbating existing economic struggles in Imperial County.
Brawley, California – The closure of the Spreckels Sugar Co. plant in Brawley marks the end of sugar beet production in California, eliminating the last sugar beet factory in the state. The plant’s owner, Southern Minnesota Beet Sugar Cooperative (SMBSC), announced that this closure will be effective at the end of the current processing year, following March.
With this shutdown, Imperial County leaders declared a state of economic emergency on September 9, highlighting the dire consequences of this decision. Supervisor Peggy Price reported stark losses, including 249 full-time jobs and a significant financial impact estimated at $16.7 million in payroll and $28 million in annual economic activity.
A thorough evaluation by SMBSC cited long-term financial and operational challenges as primary reasons behind the plant’s closure. The Brawley plant, which began operations in 1947, represents almost a century of history in California’s sugar beet industry, which thrived in the mid-20th century by producing 50% of the nation’s beet sugar by the 1950s.
The closure is set to affect around 700 jobs, which will have a significant impact on the local economy and surrounding agriculture. The decision will also impact 28,000 acres of contracted sugar beet farming, directly employing approximately 400 workers. It has been noted that operations from the Brawley plant will be shifted to a more efficient facility in Renville, Minnesota, due to rising production costs and declining sugar prices.
This closure is expected to create a ripple effect on ancillary jobs, affecting truck drivers, farmworkers, and businesses associated with fertilizer and seed supply. 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.
Compounding the blow to the local economy, federal regulations prohibit the processing of sugar beets at other facilities once the Brawley operation shuts down. The closure effectively signals the termination of sugar beet farming in California since there are no alternative processing options available in the state. Given that Imperial County has dealt with the highest unemployment rate in California for years, this closure adds another layer of economic distress to an already struggling community.
Frustration among local growers and officials has been evident, as many express concern over the lack of communication regarding the closure decision. The community is now scrambling for solutions while exploring alternative crops; however, options are severely limited. There are fears that with the loss of sugar beet production, fields could go fallow, leading to decreased local employment opportunities.
SMBSC previously invested nearly $100 million over a decade to modernize the Brawley facility, but ultimately, it could not establish financial viability. The closure of this plant echoes a nationwide trend of sugar factory closures that have been influenced by market conditions and federal agricultural policies, further shaping the landscape of the sugar industry in the U.S.
FAQ
What is happening to the Spreckels Sugar Co. plant in California?
The Spreckels Sugar Co. plant in Brawley, California, is closing, eliminating the last sugar beet factory in the state.
What are the economic impacts of the closure?
The closure will lead to the loss of around 700 jobs, significantly impacting the local economy and agriculture, with reported losses including 249 full-time jobs, $16.7 million in payroll, and $28 million in annual economic activity.
What areas of the economy will be affected by this closure?
The closure is expected to impact ancillary jobs, including truck drivers, farmworkers, and businesses associated with fertilizer and seed companies.
How has the sugar beet industry performed in California historically?
California’s sugar industry had previously thrived, producing 50% of the nation’s beet sugar by the 1950s, but has been struggling leading up to the closure of the last processing facility.
What options are local growers considering post-closure?
Local growers and officials are exploring alternative crops, but options are limited, with fears that fields will go fallow, leading to decreased local employment opportunities.
Key Features of the Spreckels Sugar Co. Closure
| Feature | Description |
|---|---|
| Closure Announcement | Spreckels Sugar Co. plant in Brawley, California, will close at the end of the current processing year. |
| Job Losses | Estimated loss of 700 jobs, including 249 full-time positions. |
| Economic Impact | $16.7 million in payroll and $28 million in annual economic activity losses reported. |
| Sugar Beet Farming | Affected 28,000 acres of contracted farming, directly employing around 400 workers. |
| Historical Context | The plant has been in operation since 1947; California’s sugar beet industry used to produce 50% of the nation’s supply. |
| Shift of Operations | Operations will be moved to Renville, Minnesota, due to rising costs. |
Deeper Dive: News & Info About This Topic
- Calexico Chronicle
- Los Angeles Times
- The Desert Review
- SFGATE
- Farm Progress
- Wikipedia: Sugar beet
- Google Search: Sugar beet industry California
- Google Scholar: Sugar beet production
- Encyclopedia Britannica: Sugar beet
- Google News: Sugar beet factory closure
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