Solanum has announced a proposal to close its Yaxley potato packing operation this autumn.
The operation has sustained losses over the last three years and in consultation with its customers, the directors are of the view that closure may be the only viable option.
Managing director William Burgess, said: "The fresh potato market has been in decline for a while, although our group is very profitable, we can no longer afford to run our potato operations over two sites. Plans are being made for our potato operations to be carried out from our Sutton Bridge site."
The closure of the Yaxley operation is likely to lead to some redundancies. Burgess said: "It has been a difficult decision as we have a team of good, loyal staff. However, we are hopeful that a large number of staff can be relocated."
Any closure will be managed positively with Solanum's customers who will honour all written commitments to growers and suppliers.