An egg packing plant in Cornwall is set to close, with the possible loss of 40 jobs.

STC Packers Cornwall, based in Liskeard, will cease operations on 27 April.

“Unfortunately we can confirm that, due to challenging market conditions, we have had to take the difficult decision to close our operation at Tremar near Liskeard,” said a spokesman. “We are in ongoing discussions with the employees regarding the possibility of redeployment.”

The plant is believed to have been badly affected by the EU ban on conventional cages. The number of eggs going through the plant dropped so that it is no longer as profitable as it once was.

One of the employees, who wished to remain anonymous, spoke to local media about the closure. She said: “We’re all devastated – we can’t get over it. It was a real shock. We knew there had been a change in cage sizes which led to a shortage of eggs, but we didn’t expect this.”

STC Cornwall leases the Tremar site from Stonegate. While the companies share directors, STC Cornwall and Stonegate are separate businesses.