Closure of Spreckels Sugar Co. Plant Threatens Jobs in Brawley

View of a deserted sugar processing plant in Brawley, California.

Brawley, California, October 21, 2025

News Summary

The Spreckels Sugar Co. plant in Brawley, California, will close at the end of the current processing year, leading to approximately 700 job losses and economic fallout for the local community. This marks the end of sugar beet production in the state, impacting 28,000 acres of farming and an annual economic activity loss of $28 million. Imperial County officials have declared a state of economic emergency in light of this significant closure, which is attributed to long-term financial challenges. The plant’s operations will move to Renville, Minnesota.

Brawley, California – The Spreckels Sugar Co. plant in Brawley has announced its closure, marking the end of sugar beet production in California and threatening hundreds of jobs. The closure by the Southern Minnesota Beet Sugar Cooperative (SMBSC) will take effect at the end of the current processing year after March. This decision has prompted Imperial County leaders to declare a state of economic emergency on September 9, highlighting the significant impact it will have on the local community.

According to Supervisor Peggy Price, the closure of the plant will result in the loss of 249 full-time jobs, $16.7 million in payroll, and $28 million in annual economic activity. A comprehensive evaluation cited long-term financial and operational challenges as the primary reasons for shutting down the facility. The plant, which began operations in 1947, is entwined with nearly a century-long history of California’s sugar beet industry.

The sugar industry in California was once robust, producing 50% of the nation’s beet sugar by the 1950s. However, the impending closure will likely lead to the loss of around 700 jobs, creating significant repercussions for Imperial County’s economy and agriculture. Furthermore, the closure affects 28,000 acres of contracted sugar beet farming, directly employing approximately 400 workers.

The operations from the Brawley plant will be transferred to a more efficient facility in Renville, Minnesota. Rising production costs and declining sugar prices were key factors in this transition. Experts anticipate that the closure will have a ripple effect on ancillary jobs, including those of truck drivers, farmworkers, and businesses reliant on sectors like fertilizer and seed supplies.

In 2019, sugar beets contributed $1.18 billion to U.S. cash receipts from sugar farming, with yields in Imperial County averaging 40 tons per acre. As per federal regulations, the processing of sugar beets cannot occur in other facilities once the Brawley plant closes, effectively ending sugar beet farming in California since there are no alternative processing options within the state.

The closure exacerbates the economic challenges facing Imperial County, which has struggled with the highest unemployment rate in California for several years. Local growers and officials have expressed their frustration regarding the lack of timely communication about the closure decision. Many are now scrambling for solutions to mitigate the impending loss of jobs and economic instability.

Despite SMBSC investing nearly $100 million over the past decade to modernize the Brawley facility, achieving financial viability proved impossible. The plant’s closure is consistent with a broader trend of sugar factory shutdowns across the western United States, influenced by unfavorable market conditions and federal policies.

As the community grapples with this loss, there is exploration into alternative crops. However, options remain limited, leading to concerns that many fields may go fallow, resulting in a decrease in local employment opportunities.

Key Statistics

  • Job Losses: Approximately 700 total job losses expected
  • Full-Time Jobs Lost: 249
  • Annual Economic Activity Impacted: $28 million
  • Acreage Affected: 28,000 acres of contracted sugar beet farming
  • Direct Workers Impacted: About 400

FAQs

What is the reason for the closure of the Spreckels Sugar Co. plant?

A thorough evaluation cited long-term financial and operational challenges as reasons for the closure.

When will the closure of the Brawley plant take effect?

The closure will take effect at the end of the current processing year, after March.

How many jobs are expected to be lost due to the closure?

The closure will likely lead to the loss of around 700 jobs.

What economic impact will the closure have on Imperial County?

Supervisor Peggy Price reported losses including $16.7 million in payroll and $28 million in annual economic activity.

Are there alternative processing options for sugar beets in California?

Federal regulations prevent the processing of sugar beets in other facilities once the Brawley plant closes, marking the end of sugar beet farming in California.

Deeper Dive: News & Info About This Topic

STAFF HERE HOLLYWOOD
Author: STAFF HERE HOLLYWOOD

The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.

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