The Association of Sugar Beet Producers of South Germany VSZ announced on Thursday, May 16 that it would not support the French farmers' offer to buy two sugar mills, which the German Suedzucker plans to close in France.

The crisis that arose on the sugar market after the abolition of quotas for the production of sweet products in the European Union in 2017 forced Suedzucker, the largest sugar producer in the European Union, to plan a capacity reduction of 700 thousand tons and close five sugar factories.

According to the plan, in 2020 Suedzucker will cease production at two sites in its French subsidiary Saint Louis Sucre.

This prompted the French sugar beet cultivation group CGB to develop a proposal by which farmers will purchase both sites in St. Louis Sucre for € 30 million, said CGB Chairman Frank Sander.

But VSZ, representing the interests of majority shareholders of Suedzucker, rejected the offer on Wednesday, May 15, after meeting with representatives of French sugar beet producers.

“VSZ continues to support Suedzucker's management plan to close two French businesses,” said VSZ Executive Director Fred Zeller. However, the French said they would not give up the fight.