UP to 90 jobs could be lost with the news that Worldwide Fruits is to close its packing and grading operations at Bysingwood Road, Faversham.

Workers have been told that a 30-day consultation period would be held between union officials and workers in a bid to soften the blow. The announcement has surprised both Swale Borough Council and Faversham Town Council.

The firm, which employs about 130 people, has blamed packing and grading over-capacity in the area, de-regulation of the New Zealand apple and pear industry and more packing in countries of origin.

Competition meant a decision had to be taken for the good of the firm despite the money it had spent on upgrading facilities. Packing and grading will take place on its other sites.

The site, still owned by East Kent Packers, will be used as a storage facility employing up to 50 people. The first redundancies are to take place on March 29 and should be finished by April 10.

Mayor of Faversham Cllr Tom Gates, who once worked for East Kent Packers as a lorry driver when it still operated at Whitstable Road, said: "I'm surprised and shocked at this awful news. East Kent Packers is one of the oldest established firms in Faversham and we can ill afford to lose so many jobs.

"Over the past few years we've seen opportunities for employment in the town fall dramatically. We must try to bring light industry back to the town. This will have a knock-on effect in the town."

Workers were shocked. One said: "Everybody worked so hard. It's a tragedy for the people and for Faversham. It's like losing your right arm."

Chief executive Alasdair Robertson confirmed the final number of redundancies would be between 80 and 90. He said: "We've had to take a view on the site. We still believe the site is an excellent site and we still want to do what we can and commit as much to it as possible."

Faversham MP Hugh Robertson, who is secretary of the parliamentary fruit group, said it was a huge blow. He said: "I am enormously saddened by the news, but it is symptomatic of the whole crisis in the farming industry. It will go on happening until we take our farming industry seriously."

Swale Borough Council said it would see what help it could offer to both the company and the workforce. Economic development officer Kieren Mansfield said: "We knew that the company and the industry had been through difficulties. I don't know what the other implications are for the local top fruit growers involved in East Kent Packers and clearly we've got to make our own inquiries."