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British Sugar plc

British Sugar
Subsidiary
Industry Sugar beet processing
Founded 1936
Headquarters Peterborough, England, United Kingdom
Number of locations
5
Area served
United Kingdom
Key people
Paul Kenward (managing director)
Products Sugar
Parent Associated British Foods
Website britishsugar.co.uk

British Sugar plc is a subsidiary of Associated British Foods and the sole British producer of sugar from sugar beet.

British Sugar processes all sugar beet grown in the United Kingdom, and produces about two-thirds of the United Kingdom's quota of sugar, with the remainder covered by Tate & Lyle and imports. British Sugar and the growers fix a contract called the "Inter Professional Agreement" determining price paid for beet grown and the allocation of growers' quotas. The National Farmers Union (NFU) is the negotiator for the growers.

The British Sugar Corporation was a company that was formed in 1936, when the British parliament nationalised the entire sugar beet crop processing industry, under the banner of British Sugar Corporation. At this time there were 13 separate companies with 18 factories across the country. In 1972 it began selling its sugar products under the name of Silver Spoon.

In 1977, a rights issue decreased the government holding from 36% to 24%. It was taken over by Berisford International in 1982, and in May of that year, the company name was shortened to British Sugar plc.

It was sold on 2 January 1991, to Associated British Foods (ABF) after a crash in property values affected Berisford. ABF had attempted to purchase in the late 1980s but the stockmarket downturn had stopped their move.

British Sugar is effectively the sole buyer of all of the sugar beet grown in Britain. This output comes from around 3,500 farmers throughout Britain.

Due to the need for continued efficiency in the face of changes to the European Sugar Regime, there has been significant reorganisation within the company. The most noticeable is that the number of factories has been reduced over the years. Closures at some sites have resulted in the expansion of active plant processing periods ("campaigns") at others. One of the cost effective measures is to increase the front end processing of sugar beet up to the "thick juice" stage (a syrup). This is stored in tanks and processed out of season spreading the load on the crystallisation stages which do not have to be uprated.

In 1981 the Ely, Felsted, Nottingham and Selby factories closed after a reduction in the allowed sugar quota. This was followed by the closure of a site at Spalding in 1989, Peterborough and Brigg in 1991, King's Lynn in 1994, Bardney and Ipswich in 2001, Kidderminster in 2002, and Allscott and York in 2007. The site at Allscott, which opened in 1927, near Telford, Shropshire, was closed because it "lacked scale" to be run economically, while the site at York, North Yorkshire (opened 1926) was closed due to the poor crop yields in northern England.


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