Cavendish Farms to close temporarily

Cavendish Farms, the largest private employer in P.E.I., is closing down its operations for two weeks because of the downturn in the U.S. economy.

The company is one of the largest processors of frozen potato products in the world and employs approximately 800 people.

Cavendish will shut down its two plants in New Annan and a third in North Dakota between Nov. 20 and Nov. 27, and again between Dec. 23 and Jan. 2.

"We've noted a significant drop in consumption of french fries as a result of the current economic conditions, primarily at fast food restaurants," said Mary Keith, a spokeswoman for the company. "As a result, we've got to adjust the amount of product that we're producing."

Keith said Cavendish will keep a skeleton crew employed during the closure, but most of the employees will be temporarily laid off.

"Employees have the choice to use their vacation time for the shutdown or to go on unemployment benefits," she said.

Cavendish officials said they will reassess the situation in March and might close again if things don't improve.