Produce World Group's joint venture (JV) with Lincolnshire Field Products (LFP) means that jobs could be lost with the closure of the former's Butterwick site.
The two companies' JV would be involved in the growing, harvesting, packing and marketing of brassicas in Wykeham, just outside Spalding.As a result, Produce World Group has proposed the closure of its site at Butterwick.
Consultations have commenced with staff and their representatives at Butterwick. It is anticipated that, while there would be job losses at Butterwick, around 60 new jobs would be created at Wykeham.
Produce World has also announced that it proposes closing its factory at Swinderby, and moving all processing and packing of conventionally-grown root vegetables to its site at Isleham.
Additional processing and storage facilities are being built at the Isleham site to cope with the additional tonnage, and a number of new jobs will be created.
The company has entered into consultation with staff and their representatives at the Swinderby site.
Produce World Group executive chairman Neil Fraser, said: “At Produce World we are growing our business and developing a structure which will enable us to meet the current and future challenges in the industry.
'We are operating in a low-margin business and more consolidation across the industry is inevitable. At the same time, our customers are experiencing a period of unprecedented competition and changing consumer shopping habits.
“We have acted to ensure we can meet these challenges and make the Produce World Group sustainable for the future. We are committed to the long-term for the business and for fresh vegetable growing in Lincolnshire and across East Anglia.
“Our roots business at Isleham already operates successfully as a JV with Tompsett Burgess Growers, and this is the model we plan to use with LFP.'
He added: “We are very much aware of the impact that the proposed closures will have on our colleagues at Butterwick and Swinderby, and we have considered and will consider every possible option before implementing these proposals.
'Both sites will remain open for a number of months and we will do everything we can to help colleagues to find alternative employment including jobs within the Produce World Group.”
