Spreckels Sugar Plant in Brawley to Close Permanently, Ending Nearly a Century of Operations

BRAWLEY — After decades as a key fixture of Imperial Valley’s agricultural economy, the Spreckels Sugar Company plant in Brawley will shut its doors permanently, beginning the decommissioning process in late July 2025. The announcement was confirmed through A letter to employees delivered Tuesday, and later expanded upon by company executives and county officials.

The nearly 100-year-old plant, originally built in 1947, is the last operational sugar beet processing facility in California. Its closure marks the end of an era for Imperial Valley, California’s top producer of sugar beets

Southern Minnesota Beet Sugar Cooperative (SMBSC), the plant’s parent company, stated in a prepared release that the decision was the result of cumulative financial losses, rising production costs, and industry-wide challenges, including inflation, price declines, and competition from imported sugar. Despite over $100 million invested in upgrades and increased employee compensation over the past decade, officials said the Brawley facility is no longer financially viable and therefore will decommission its Brawley, California operations under its subsidiary, Spreckels Sugar Company, Inc., citing long-standing economic challenges within the sugar industry.

Operations at the nearly century-old facility are set to begin winding down in late July 2025 as the current processing season concludes. While certain functions such as warehousing and shipping will continue until late 2025 or early 2026, the facility will ultimately close due to sustained financial losses and a changing economic landscape.

“Despite our extensive investments in the facility, the economic challenges facing the sugar industry have been building for several years as the costs of operating the Spreckels facility have continued to escalate,” said Paul Fry, president and chief executive officer of SMBSC. “We appreciate the California Beet Growers Association (CBGA) working with us over the years and are proud of this facility and the workers who have operated it.”

Over the past decade, SMBSC invested nearly $100 million into the Brawley plant in an effort to modernize it. Employee compensation increased by more than 66% during that period. Nonetheless, the facility has posted cumulative financial losses for over 10 years.

The cooperative pointed to several key factors driving the decision: declining sugar and co-product prices, persistent inflation, competition from foreign sugar imports, and outdated federal loan rates that have failed to keep pace with rising production costs. Additionally, the U.S. sugar industry has seen 28 facility closures since 2000, leaving only 43 sugar beet and sugarcane processing plants in operation across the country.

The Brawley plant was the last remaining sugar beet processor in California.

SMBSC will shift its operational focus to its Renville, Minnesota facility, which has demonstrated strong financial performance, advanced technologies, and greater logistical efficiency. Officials say this move will help preserve the long-term viability of the cooperative and its broader workforce.

Support for Affected Workers and Community

SMBSC stated it will implement a comprehensive support plan for impacted employees, including severance packages, job placement assistance, retraining programs, and counseling services. It also plans to work with local stakeholders to explore future redevelopment opportunities for the facility to benefit the Brawley community.

Assurance to Customers

During the transition, SMBSC says it remains committed to upholding quality, service, and regulatory standards. National Sugar Marketing (NSM) and Midwest Agri-Commodities (MAC) will coordinate with customers to ensure supply chain continuity.

“Despite our extensive investments in the facility, the economic challenges facing the sugar industry have been building for several years as the costs of operating the Spreckels facility have continued to escalate,” said SMBSC President and CEO Paul Fry. “We made the difficult decision to close the Brawley factory and carefully focus our resources on the Renville, Minnesota factory, given its strong performance and updated technologies.”

Local Concerns Raised

During Tuesday’s Imperial County Board of Supervisors meeting, Chairman John Hawk shared the news publicly, voicing concern about the broader agricultural implications of the closure. Hawk highlighted the uncertain future of approximately 100,000 acre-feet of water annually allocated for sugar beet cultivation.

Supervisor Hawk’s comments followed days of speculation, which began with remarks by Supervisor Ryan Kelley, who said he had heard the plant might be closing. That speculation has now been confirmed by multiple sources, including internal company documents and public statements from SMBSC.

The impact extends beyond the 300 seasonal harvest workers directly employed at the plant. The closure is expected to affect a wide range of auxiliary industries, including farm equipment suppliers, seed companies, fertilizer dealers, truck drivers, irrigation crews, and rail transport workers.

Sugar beets are the eighth most valuable crop in Imperial County, yielding around 40 tons per acre and producing an average of 14,000 pounds of sugar per acre. Unlike in the Midwest, the crop cannot be stockpiled in the region’s extreme heat, requiring continuous harvesting while the factory is operational.

Thursday congressman Congressman Dr. Raul Ruiz (CA-25 issued a statement stating "I’m deeply disappointed by the news of the Spreckels Sugar Beet Facility’s planned closure in Brawley. I am heartbroken for the workers and their families, and I urge all stakeholders to come together once again and exhaust every option to save this facility and the communities it supports.” following the closure of Spreckles sugar announced April 22.

Industry and Economic Challenges

In its public statement, SMBSC cited the out-of-date federal loan rates under the U.S. Sugar Program and an influx of Tier-2 sugar imports as additional stressors. The cooperative noted that since 2000, 28 sugar beet and cane factories have closed nationwide, leaving only 43 still in operation.

The Brawley plant had previously survived a wave of shutdowns, including the closure of the Spreckels Mendota plant in 2008 and the historic Holly Seed plant in Sheridan, Wyoming, in 2021. But according to the company, the financial burden to modernize the Brawley facility—estimated at over $100 million—was too great for the cooperative to absorb.

SMBSC said it is implementing support programs for displaced employees, including severance packages, job placement assistance, retraining, and counseling services. Warehousing and shipping operations are expected to continue into late 2025 or early 2026 to fulfill remaining orders.

760 News Media will continue to provide updates as this story develops.