Cedenco Foods says a drop in the international demand for corn cobs and kernels is the main reason for closing one of its factories in Gisborne.
The company's Australasian managing director, Richard Lawrence, says about 120 seasonal workers will lose their jobs as a result of the factory not re-opening next year.
Mr Lawrence says the company bought the business in 2005 to heat vacuum-packed corn products between February and April each year.
He hopes some of the seasonal workers will find jobs in Cedenco's other plants in Gisborne.
