Chile ends 73 years of dugar beet farming as global price pressure mounts

Chile is ending its domestic sugar beet production after 73 years, marking a major shift in its agricultural sector. Empresas Iansa, the country’s only sugar beet processor, announced it will stop contracting farmers for the 2026/27 season. The decision comes amid persistently low global sugar prices and rising production costs that have made beet cultivation economically unviable.

At its peak, sugar beet farming was a significant part of Chile’s rural economy, covering more than 60,000 hectares. The industry achieved some of the highest yields globally thanks to irrigation systems and favorable soils, particularly in the Maule, Ñuble, and Biobío regions. For decades, it provided stable income for hundreds of farmers and supported local agro-industrial activity.

However, competitiveness steadily declined as cheaper imported cane sugar, especially from Brazil, dominated global markets. The shift has led to the gradual erosion of domestic production, affecting rural employment and prompting regional authorities to launch crop reconversion programs, including switching around 2,500 hectares to corn and tomatoes for approximately 140 farmers.

Iansa will now fully transition to refining imported raw cane sugar at its Chillán facility to meet domestic demand. While this ensures continued sugar supply for the country, it highlights broader structural challenges facing sugar beet producers in temperate climates worldwide, where global price volatility and competition from cane sugar continue to reshape the industry.

Tags: sugar, Chile