The background of sugar production in Latvia can be traced back to year 1784. The year 2006 marked the 80th anniversary since production of sugar from sugar beet began at the Jelgava sugar factory. This anniversary was accompanied by the initiation of liquidation of a profitable sugar industry, which was based on processing local raw materials. After the complete liquidation of Latvian sugar industry within the framework of European sugar market reform, Latvia each year imports thousand of tons of sugar to the amount of 30 to 50 million LVL. This led to an increase in the imports’ overweight over exports, declines in employment and tax payments into the State budget. Statistics outline that sugar retail prices grew after the reform rather that decreased, as it was promised before the liquidation of the sugar industry. The quality of sugar, offered in the market, worsened as well. In order to renew sugar production in Latvia and supply consumers with high-quality sugar produced from Latvian sugar beet, it is necessary to: purchase a land plot, develop a project of building a sugar factory, ensuring an up-to-date technological process. The total cost of the sugar factory can amount to a total of 100 million LVL.