British Sugar proposes Cantley closure amid low European prices

British Sugar is proposing to close its factory in Cantley, Norfolk, by the end of February 2027, putting more than 100 jobs at risk. The closure would consolidate the company's entire UK beet processing operations at its three remaining sites: Wissington, Bury St Edmunds and Newark.

The proposed shutdown highlights the severe margin pressure currently gripping European sugar processors. British Sugar has been loss-making for the past three years, according to Jerome Mayhew, the Conservative MP for Broadland and Fakenham. The company's decision to shutter a century-old facility underscores how sustained low European sugar prices and high energy costs are forcing industrial consolidation.

Keith Packer, managing director at British Sugar, said the move was the result of a rigorous operational review. "This proposal has not been taken lightly," he said. "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."

For the agricultural sector, the closure represents a tangible shift in supply chain economics. Moving beet processing away from Cantley will force local farmers to absorb higher haulage costs to reach alternative facilities. "All the sugar beet that comes in, comes from the farms around Norfolk, and that's going to have a very significant impact on the wider farming community," Mayhew said.

The financial impact will cascade into the broader regional economy, hitting secondary businesses that provide support services to the plant. Mayhew called the development "devastating" and stated he intends to challenge the company's underlying assumptions. "I want to challenge them and some of the assumptions they've made around Cantley, to make sure that every stone has been turned over to see whether this plant can be saved," he said.

Despite its historical significance as the UK's first sugar factory, opening in 1912, the Cantley site has fallen victim to structural market shifts. The facility produces an average of 130,000 tonnes of sugar annually and underwent an £11m energy efficiency upgrade just last year.

However, a long-term decline in sugar demand has rendered the site economically unviable. Consultations with Unite, the workers' recognised union, will now begin ahead of the factory operating as normal for the current year.