A mushroom farm that has operated at Spreyton for around 50 years is set to close.
The decision by Costa Group to close the "aged higher cost" facility on November 8 is expected to impact 56 jobs.
Corporate affairs manager Michael Toby said the company reviewed its mushroom farms and "couldn't justify the cost of continuing to operate" a facility that relied on "old technology".
"It has been a very challenging year for the business in general and in particular our mushroom category, where there has been low demand and reduced pricing," he said.
The closure of the Spreyton farm and another site in Queenstown comes as Costa focuses efforts on developing a "state-of-the-art world class operation" in Adelaide.
But Mr Toby said there would be opportunities for Spreyton employees to take jobs at Costa's berry and logistic operations in the North-West.
"We're currently working through with the employees as to whether they're interested in looking for work in that area of the business," he said.
Minister for Primary Industries and Water Guy Barnett said the government had "offered the support of our Skills Response Unit to work with the company to support affected staff".
Mr Barnett also welcomed news the company intended to transfer as many employees as possible to its berry business and wider operations.
"Costa is a significant part of Tasmania's broader $300 million fruit sector, and this business remains strong," he said.
Mr Barnett said the decision to close the Spreyton site was "regrettably .... a business decision for Costa".
MORE TO COME
Lachlan Bennett
Lachlan Bennett is a journalist based in Burnie with an interest in politics, primary industries, transportation, tourism and the West Coast.
Lachlan Bennett is a journalist based in Burnie with an interest in politics, primary industries, transportation, tourism and the West Coast.
