Drought blamed as company shuts gates, sacks 40
STAFF at Costa Group's mushroom farm turned up to work this week, only to be greeted by the news the business was shutting up shop.
The company has partly blamed drought for the closure, while confirming 42 jobs were set to go from the Glen Aplin site.
Costa Mushroom Category general manager Jose Cambon said several factors led to their decision.
"Today our Glen Aplin mushroom farm staff were advised of our proposal to mothball the site for the foreseeable future," Mr Cambon said.
"There are several reasons for this, the main ones being the current subdued state of the mushroom market and the lack of a reliable water supply in the region due to drought.
"Given we grow mushrooms Australia wide we have also recently commissioned a large low cost expanded mushroom facility in South Australia which will improve our overall competitive position.
"Unfortunately, this means mothballing some older higher cost mushroom growing capacity," he said.
"Due to these factors we cannot commercially justify continuing to operate the Glen Aplin farm at this time, which produces less than 1 per cent of Costa's national mushroom production."
The decision means, of the 42 job losses, six permanent staff will be made redundant.
"We are also in the process of consulting with those who may wish to seek alternative employment within Costa," Mr Cambon said.