Cavendish Farms is blaming a shortage of potatoes on Prince Edward Island as it closes a fresh produce packaging facility in O’Leary, P.E.I., and switches to producing only frozen potato products in the province.
It says the closure by the end of the year will affect 40 employees but some seasonal workers will be hired when the facility switches to a storage role.
General manager Ron Clow says Cavendish had a shortfall of 68 million kilograms of potatoes in 2017 in P.E.I. which it made up for by buying from new sources on the island as well as from producers in New Brunswick, Manitoba, Alberta and Maine.
WATCH: N.B. family launches vodka made from potatoes
He says the company has already made arrangements to import 29.4 million kilograms of potatoes to P.E.I. this year, which is not economically sustainable.
Last fall, Cavendish Farms broke ground on a $360-million frozen potato processing plant in Lethbridge, Alta., which is expected to triple existing capacity there when it opens in the fall of 2019.
The company, part of the J.D. Irving Group of Companies, has two potato processing plants in P.E.I. and another in Jamestown, N.D.
© 2018 The Canadian Press