QV Foods says it has entered a period of consultation with about 140 staff at March as it prepares to move the operation to Holbeach.
The firm says if the move goes ahead it will create 125 new roles at Holbeach.
A spokeswoman for the £140 million a year turnover company refused to say how many staff currently work at the Holbeach site.
The company stresses that it hopes to minimise redundancies by finding suitable roles for as many of its affected March employees as possible.
“The proposal would help the company address its cost base and capacity needs for current business volumes whilst creating headroom for future growth.”
“The owners of QV Foods are fully committed to growing the business for the future, but the company has to have an efficient cost platform on which to do this.”
“The proposal to consolidate the potato business at the Holbeach site, which sits at the centre of our farming and packing operations, is a logical step to achieving this.”
“We are now entering into consultation with our staff about this proposal; in the meantime it’s business as usual.”
QV Foods is owned by AH Worth Ltd, a fourth generation family-owned farming and packing business.
The business, which supplies to many leading retailers, has been trading for more than 50 years.
It operates at several sites in the United Kingdom, but predominantly around its heartland of Holbeach where it farms 5000 acres.