McCain Foods is closing a potato processing plant in South Australia, resulting in 59 job losses.
Increasing amounts of cheap imported potatoes and the rising costs of manufacturing in Australia are the reasons for the closure of the Penola plant, the frozen food maker said.
"Cheaper potato imports are seriously threatening the future of the processing industry in Australia, and will place further cost pressures on Australia's growers," the head of McCain Foods in Australia, New Zealand and South Africa, Louis Wolthers, said.
"Major food industry companies in Australia would welcome any federal and state government support to address the structural issues in order for the potato industry to be more competitive."
The plant's 59 permanent employees will be offered redundancy packages and assistance with finding new work, the company said.
McCain said it was committed to continuing operations at other plants in Victoria, New South Wales and Tasmania.
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