Food processor McCain has announced it will close a factory in South Australia, leaving some potato growers without a local processor.

McCain says its Penola plant, about 380 kilometres south east of Adelaide, will shut down before Christmas, putting 59 staff out of a job.

The closure will also mean growers in the region will need to transport their crop further for processing.

McCain Foods regional president for Australia, Louis Wolthers, says the decision will not affect the quantity of potatoes it buys from local growers.

Currently half of the potatoes grown in south east South Australia are processed in Victoria, at Ballarat.

Mr Wolthers says once the Penola plant ceases operation, all potatoes from the south east will be processed at Ballarat.

But he could not say who will pay the extra costs associated with transporting potatoes further for processing.

"That will be an ongoing discussion between ourselves and the growers.

"That certainly is something that we have to discuss with those growers," he said.

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