Critical moment for beets in Spain? Farmers charge against the changes in Azucarera

The waters are turbulent among sugar beet producers. The agricultural organization COAG has criticized this week that Azucarera, owned by the British Associated British Foods (ABF) which is also the owner of Primark, has decided to concentrate its grinding (crushing) activity in its factory. Bull (Zamora) eliminating it from its facilities Miranda de Ebro and La Bañeza (León). In addition to dedicating only refining to its factory Jerez de la Frontera (Cádiz) and, they reproach, that the prices they raise to farmers move between 36 and 37 euros/ton. Which is below production costs estimated between 44 and 45 euros per ton. From COAG they explain that the above would mean a loss of 18-20 euros per ton for each beet grower. The agricultural director of Sugar bowlSalomé Santos, defends in statements to ‘Economic Information’ that last year they already incurred losses (28 million euros) and that paying more would be “bread for today and hunger for tomorrow”, so they are committed to “balancing the value chain.”

“Adverse phenomena” and falling international prices

The beet campaign in the Spanish countryside began on October 1 and will continue until September 30 of the following year. The Azucarera executive talks about “adverse climatic phenomena” in recent months in the crop and of “a regulatory framework in which contingents from markets such as Ukraine and in which the sugar market has been completely opened.” Added to all of the above is the fall in prices at an international level throughout this year: the price has gone from $511.9 per ton recorded on January 2 until the $425.6 with which it closed this Wednesday, December 10. A year in which it has reached $564 per ton on two occasions: on February 25 and March 17. Levels from which it is far away today.

“We are returning to pre-pandemic prices,” warns EAE Business School professor María Ángeles Ezpeleta

The EAE Business School professor, María Ángeles Ezpeleta, highlights that “we are returning to pre-pandemic prices” and explains that “the rise in sugar starting in 2020 was due to the increase in costs, not due to supply and demand, which are stable.” In this sense, Ezpeleta highlights that before the year of Covid, sugar moved between 12 and 16 cents per pound and that it rose to 21 cents in 2023 “while now they are back to 14 cents and there is a possibility that it will go down further.” Bad time to increase production.

The Toro factory and a move to Paraguay?

COAG also criticizes that Azcucarera has gone from 90 sugar factories to one in Bull (Zamora)in addition to having eliminated the milling (or crushing) activity in its factory in Jerez de la Frontera (Cádiz), which will be dedicated to refining all year round. The company’s agricultural director flatly denies that there is a relocation plan of production outside Spain in reference to those maintained by COAG, which warned of a hypothetical investment of 42 million euros in Paraguay. Regarding the prominence that its Toro (Zamora) factory has gained, after the approval of an ERE that affected 251 employees this year, the Azucararea board of directors defendse “that pursues the sustainability of the crop in the face of a very volatile market” in reference to international sugar prices and their impact on the value of production.

About Jerez de la Frontera (Cádiz), Salomé points out that “has always been a refiner except in a period that they milled in August and September.” Something that has changed the fall in prices and that would force them to offer remuneration below costs. Which is not allowed. “Looking ahead to next year, there is no decision made and it will depend on the price context,” adds the company representative. The agricultural director highlights that, with all these measures, the aim is to “reduce fixed costs, modernize it and increase energy efficiency”, and mentions an investment of 30 million euros in the next 5 years. This year, 2.4 million have already been disbursed in these facilities. The CEO of Azucarera, Juan Luis Rivero, confirmed in a note published yesterday that “Cultivation will continue to be key and, therefore, we will continue to accompany and support farmers, from sowing to harvesting.”

“Azucarera pursues the sustainability of the crop in the face of a very volatile market”, Salomé Santos (Azucarera)

Spain, deficient in sugar

For the person in charge of the beet sector at COAG, Javier Briñas, “Azucarera Iberia does not want sugar beets. It wants to bring sugar from third countries, to grind (grind) in its factories in Miranda de Ebro and Jerez de la Frontera.” Which, in its opinion, questions the traceability of the product and wonders where food security is. This agricultural organization estimates that sugar imports have increased 33% in the last decade, going from just over a million tons in 2015 to climb to 1.4 million in 2023.

The latest campaign summary, prepared by the Ministry of Agriculture, reports that in 2023-2024 there were a sugar production of 383,666 tons. All this, compared to a global harvest that in 2024-2025 exceeded 176 million tons (the European Union generated just over 16.5 million). In this period Spain exported sugar worth 82.3 million of euros (102,465 tons) and imported for an amount of 656.5 million, which in terms of volume represented more than 1.14 million tons. The majority originated in EU countries, reaching 763,874 tons and worth 454.15 million euros, while more than 380,000 came from third countries (202.35 million). At COAG they warn that with the signing of the trade agreement with Mercosur the situation may worsen, since Brazil is one of the great exporting powers of sugar cane.

Spain exported sugar worth 82.3 million euros (102,465 tons) in 2023-2025 and imported sugar for an amount of 656.5 million, which in terms of volume represented more than 1.14 million tons. More than 380,000 tons arrived from third countries

Briñas (COAG) criticizes European policies and warns that “with the disappearance of beet cultivation, in much of Spain, we will become an even more sugar-deficient country and, furthermore, it would endanger the rest of the irrigated crops.” The spokesperson for this agricultural organization defends that “in emptied Spain we have great production potential, but if a real commitment is not made to irrigated lands, a lot of value will be lost in the countryside.” In Spain there are 3,775 farms that grow beets sugar industry, according to the 2023 Survey on the Structure of Agricultural Holdings from the National Institute of Statistics (INE). 61% are located in Castilla y León while 13.7% are in Andalusia. The average size is 10 hectares, although four out of every ten farms have an area of ​​more than 100 hectares and 21% are between 50 and 100 hectares. The INE estimates a crop area of ​​38,172 hectares.