Fane Valley Co-operative Society Ltd said it was no longer feasible to retain its Dervock plant as a potato packing centre and it will close in early April.
The plant grades, washes and pre-packs 5,000 tonnes of potatoes every year, sourced from around 50 growers mainly in the north Antrim area.
The decision will result in the loss of 16 jobs, 14 of which are full-time, and marks Fane Valley's exit from the potato sector.