Paris: France is witnessing a reduction in sugar beet production, and amid this various media reports say that Tereos may consider closing some of its capacity as part of a wider strategy review as it anticipates further declines in production.
The largest sugar producer in France had earlier stated that it would not close factories in France unlike the decision taken by its competitors Cristal Union and Suedzucker’s Saint Louis Surce which closed some mills in 2020.
According to the news report by Reuters, Olivier Leducq, Tereos Head of Sugar Europe told reporters after presenting the group’s yearly results that the company is reviewing the process. He said cut in capacity did not necessarily mean the complete closure of a factory.
The area beat area, sown by Tereos cooperative members, has declined by 10% in the last five years and is likely to lower by another 10% by 2024, he said.
Since European Union quotas ended in 2017, the sugar beet production in France is decreasing. Deterred by lower prices, farmers are shifting to other crops.