# French sugar makers to start output early as energy curbs loom
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-01
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: France's Sugar Makers to Boost Production Amid
Meta Description: Tereos and Cristal Union to start production early due to possible energy restrictions; factories to kick into action next week to avoid winter risks.
URL: https://financedigest.com/french-sugar-makers-to-start-output-early-as-energy-curbs-loomhtml

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By Sybille de La Hamaide

PARIS (Reuters) -France’s two largest sugar makers Tereos and Cristal Union will bring forward the start of their 2022 production ahead of possible energy restrictions by the government this winter if Russia cuts off gas supplies, they said on Wednesday.

Sugar production is among the most energy-intensive industries. [French factories](https://www.financedigest.com/nestle-closes-french-buitoni-factory-hit-by-e-coli-outbreak.html "Nestle closes French Buitoni factory hit by E.coli outbreak"), which usually run between mid-September to early February, are highly reliant on gas to transform their sugar beets into the sweetener.

Tereos and Cristal Union [plan to bring forward the start of production by about a week](https://www.financedigest.com/meta-plans-to-cut-thousands-of-jobs-as-soon-as-this-week-bloomberg-news.html "Meta plans to cut thousands of jobs as soon as this week – Bloomberg News") with first factories due to kick into action at the end of next week.

We are bringing forward the start of our plants so as not to be active during the months of January and February which are the coolest ones and thus when there are the biggest risks to have (energy) [cuts,” Cristal Union](https://www.financedigest.com/telecom-italia-in-talks-with-unions-on-up-to-2000-job-cuts-in-italy.html "Telecom Italia in talks with unions on up to 2,000 job cuts in Italy") chief executive Xavier Astolfi told Reuters.

Only one mid-size Cristal Union [factory will remain active](https://www.financedigest.com/asias-factory-activity-contracts-despite-chinas-covid-reopening.html "Asia’s factory activity contracts despite China’s COVID reopening") in January, Astolfi said.

French Prime Minister Elisabeth Borne urged companies on Monday to draft [energy savings](https://www.financedigest.com/schneider-and-greenyellow-target-smaller-businesses-with-energy-saving-technology.html "Schneider and GreenYellow target smaller businesses with energy saving technology") plans by next month, warning they would be hit first if ever France had to ration the supply of gas and electricity.

Today we still don’t [know to what extent they will such restrictions but we are a winter industry so we need](https://www.financedigest.com/g20-summit-what-you-need-to-know-now.html "G20 Summit: What you need to know now") to anticipate,” a Tereos spokesperson said. The spokesperson added that the end date for [factory activity](https://www.financedigest.com/oil-slips-on-china-covid-curbs-weak-factory-activity-data.html "Oil slips on China COVID curbs, weak factory activity data") would depend on weather conditions during the campaign.

The decision to [bring forward production](https://www.financedigest.com/market-realist-snags-motley-fool-analyst-brings-on-product-development-guru.html "Market Realist Snags Motley Fool Analyst, Brings on Product Development Guru") was taken after consulting their cooperative’s members, the sugar makers said. Those who will accept to harvest their [sugar beets](https://www.financedigest.com/frances-cristal-union-lures-farmers-to-secure-sugar-beet-supplies.html "France’s Cristal Union lures farmers to secure sugar beet supplies") early will be granted a compensation.

Harvesting sugar beets early reduces the plants’ yields but Astolfi said he preferred slightly [lower](https://www.financedigest.com/wall-street-ends-lower-as-bond-yields-jump-on-growth-concerns.html "Wall Street ends lower as bond yields jump on growth concerns") yields than having to leave sugar beets in the fields due to factory closures.

(Reporting by Sybille de La HamaideEditing by Bernadette Baum and Emelia Sithole-Matarise)


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