O’LEARY CORNER, P.E.I. – Cavendish Farms is closing its fresh produce packaging facility outside of O’Leary by the end of the year.
The French fry giant made the announcement Monday.
“Cavendish Farms has had to make this difficult business decision based on ongoing demand and limited availability of potatoes on the Island,” general manager Ron Clow said in a prepared statement.
Forty employees will be affected by its decision, the corporation reports.
Clow described the impending closure as “an unfortunate consequence of low yields and lack of raw potatoes on P.E.I.”
He said Cavendish Farms’ Human Resources team will be providing support to all impacted employees by helping with new assignments, assistances to find other positions across J.D. Irving or with post-employment support once operations cease.
“We are making every effort to assist impacted employees,” he emphasized.
“The supply of raw product is critical to our business,” Clow stressed.
He said Cavendish Farms had to bring in potatoes from New Brunswick, Manitoba, Alberta and Maine in 2017 to help make up for a 150-million-pound shortfall last year and indicated they already have plans in place to import 65 million pounds this year.
“This practice is not sustainable. There simply aren’t enough potatoes on P.E.I. for both our lines of business.”
Cavendish Farms will continue to use the facility for storage, thus providing some ongoing seasonal employment.
