Low sugar prices accelerate factory closures across Europe

Sugar factory closures are accelerating across Europe as falling prices undermine the profitability of beet sugar production. Since the EU abolished sugar quotas in 2017, 23 factories have already shut down, equivalent to roughly one-fifth of the continent’s production capacity.

According to the European Commission, wholesale sugar prices fell from €844/t to €510/t over two years as of March 2026. The market is under pressure from large stocks following strong harvests, as well as declining sugar consumption across Europe.

In early February, Nordzucker permanently closed its plant in Trenčianska Teplá, Slovakia, after the end of the season. The company attributed the decision to difficult market conditions and a prolonged decline in the profitability of beet sugar production.

Nordzucker also plans to close its Nakskov plant in Denmark in early 2027, end raw sugar refining at Porkkala in Finland and shut its Cantley plant in the UK. Czech Republic’s largest sugar producer, Tereos TTD, has also sharply cut investment this year and warned that more closures could follow if prices remain low.

European producers also point to growing competition from imported sugar from countries where farmers and processors face less stringent requirements. The combination of cheap imports, weaker domestic demand and high production costs could lead to a further reduction in Europe’s sugar processing capacity.

Tags: EU, sugar