Editor’s note: This story has been updated to add reaction from Mayor Ferguson.

The news came Wednesday.

Highline Produce VP Human Resources Brian McCarthy told the Gazette the company will shutter its mushroom farm on Conley Road at the end of this year.

“We have made the difficult decision to close our facility in Wellington, Ontario, as it no longer meets our long-term safety standards and evolving operational needs,” Mr. McCarthy said.

The closure puts close to 300 people out of work, and will have a spinoff effect on local farmers. Straw sold by area wheat growers, and used to insulate mushrooms in the shoulder seasons, nets over $1 million annually.

The Wellington plant employs 252 contract and 29 salaried employees. A large majority of the harvest workers are part of Ontario’s Agricultural stream of the Temporary Foreign Worker Program. All will be terminated December 12.

Employees were informed of the plant closure Wednesday morning. According to sources who attended the meeting, representatives from Highline’s headquarters, in Leamington, stressed that the decision to close the facility was directly related to the age and state of the buildings and not quality or quantity rates.

“We are actively working to minimize the impact on staff and remain fully committed to supporting all employees through this transition. Looking ahead, we are optimistic about the opportunities our new facility in Leamington, Ontario will bring for Highline Mushrooms and our team,” Mr. McCarthy added.

Last year, Highline announced a new, state-of-the-art, fully organic mushroom farm in Leamington, Ontario, billed as the “Farm of the Future.” The company partnered with Netherlands-Based Christiaens Group to serve markets in both Canada and the United States. The new facility aims to increase mushroom consumption through sustainable and innovative production methods, and comes online around the same time the Wellington facility closes.

Mycionics, a leading Canadian innovator in agricultural robotics, announced last year they were partnering with Christiaens Group to transform the global mushroom farming industry with their cutting-edge robotics and automation technology. 

Highline’s growing operations in Kingsville as well as Leamington are unaffected.

The local plant features 16 growing rooms and, at peak production, up to 50,000 pounds of mushrooms are harvested per day. Primarily organic certified white or brown (also called minibellas) are grown in Wellington. A recently introduced Portabella variety has been slowly ramping down over the last 90 days.

Produce at the Wellington farm is regularly delivered to the Sobey’s terminal in Ajax as well as locations in Eastern Ontario and Western Quebec.

Originally opened by the Campbell’s Soup company in the late 1960’s, the mushroom farm offered a prime opportunity for those working in the County’s dwindling canning industry.

It was acquired by Highline in 1990, when Campbell’s sold its Canadian mushroom business in Ontario, Manitoba, and Quebec.

Highline Produce was then acquired for $145 million by Ireland-based international fruit and produce company Fyffes in 2016. At the time, Fyffes pledged there would be “No noticeable change in the business operation.”

Less than a year later, Fyffes was acquired for $751 million by Sumitomo Corporation. The Japanese conglomerate took the company private, delisting it from the London and Dublin Stock Exchanges.

In a statement issues Thursday afternoon, Mayor Steve Ferguson said he was “gutted” by the news and added his heart goes out to the employees of Highline impacted by this closure.

“This surprising announcement will undoubtedly cause hardship for workers and their families. Let’s come together during this difficult time and support our friends and neighbours in whatever way we can,” the Mayor stated. 

He noted Highline is one of the largest employers in Prince Edward County and its loss will be felt in the local economy and the broader community.

“In the coming days, I will be speaking with staff and community members to explore ways we can respond, drawing on the recommendations and insights outlined in our Economic Development Action Plan,” Mayor Ferguson said. “Challenges undoubtedly lie ahead, but I am hopeful we can rebound and build on the strengths we currently possess.”