McCain Foods is permanently reducing the number of production shifts from 3 to 2 at its Borden-Carleton, P.E.I., plant this fall, leading to the layoff of 35 people.
Calla Farn, vice-president of government and public relations and corporate affairs for McCain Foods Canada, told CBC News Thursday export markets are not performing as expected.
"The Canadian business is meeting all of our expectations but our export business has experienced some softness,"said Farn.
"That's caused by a number of factors including the continuing high Canadian dollar, the low cost of raw potatoes in Europe and a softness in U.S. consumption caused by the recession. People are simply eating out less often."
Staff were notified of the decision on Tuesday.
Farn said the decision to close one shift will be re-visited if market conditions improve.
Affected employees will be notified in the next few days. The layoffs are effective Sept. 7.
McCain Foods Borden (PEI) french Fry factory
