O’LEARY, P.E.I. - French fry giant Cavendish Farms will close its fresh produce packaging plant near O’Leary by the end of the year.
The company announced the decision Monday, indicating a limited availability of potatoes is the reason for the closure.
“Cavendish Farms has had to make this difficult business decision based on ongoing demand, and limited availability of potatoes on the Island,” Ron Clow, Cavendish Farms’ general manager said.
The company says 40 employees are affected by the closure.
“This is an unfortunate consequence of low yields and lack of raw potatoes on P.E.I.”
The West Prince plant opened as Green Acres in 1987, and Cavendish Farms acquired the operation in 1990.
“The supply of raw product is critical to our business,” Clow said.
Clow said Cavendish Farms had to make up for a 150-million-pound shortage in 2017 and brought in potatoes from New Brunswick, Manitoba, Alberta and Maine, and he added plans are already in place to import 65 million pounds this year.
“This practice is not sustainable,” he said. “There simply aren’t enough potatoes on P.E.I. for both our lines of business.”
While Clow indicates Cavendish Farms will focus on the frozen potato processing business on P.E.I., he suggested changes might need to happen for that to continue.
In a statement issued on Monday, Cavendish Farms said: “If farmers are not able to grow more potatoes (by increasing yields, not acres) then the Prince Edward Island industry may not be sustainable as competition in the frozen potato export market intensifies.
“The P.E.I. industry will require supplemental irrigation as part of the solution. The Island cannot afford to have its largest export product entirely dependent on rainfall.”
Supplemental irrigation is also known as deep water wells.
Cavendish Farms is part of the J.D. Irving Group of Companies.
Clow said its human resources team will be providing support to all impacted employees and will help with new assignments, in finding other positions across J.D. Irving or with post-employment support once operations cease.
“We are making every effort to assist impacted employees.”
He indicated Cavendish Farms will continue to use the facility for raw potato storage and, as such, will still provide some seasonal employment there.
