The largest producer of commercially grown mushrooms in Nova Scotia is shutting its doors, throwing 23 people out of work.

Valley Mushrooms in Waterville is set to close Dec. 9 after more than 20 years of producing a variety of edible fungi, including button, cremini, baby bellas and portobello mushrooms.

The farm was purchased a few years ago by Fredericton-based ADI Group Inc.

P.E.I. farm to remain open

ADI Group also owns a second Valley Mushrooms location in Hartsville, P.E.I. A person who answered the phone said their farm is not closing.

It's unclear why the Waterville location is shutting down. ADI Group did not respond to multiple requests for comment by CBC.

According to its website, Valley Mushrooms supplied grocery stores in the Annapolis Valley, vendors at farmers' markets, as well as Pete's Fine Foods in Halifax.

The company's operations manager said it also had hundreds of customers who would drive down the farm's dirt road to buy directly from the source.

Grocer at a loss to find locally grown mushrooms

The owner of the Foodland grocery store in Coldbrook, N.S., said the closure was disappointing.

"I drive down myself twice a week and grab fresh mushrooms," said Jerry Brown.

Brown said he's struggling to find another local supplier. Valley Mushrooms produced about 227,000 kilograms of mushrooms a year.

"As a grocer, to have a local product made five minutes away from here, I can go pick it up, " he said. "To sell it in the store was always a great thing."

There should be clauses in purchase and sales agreements between companies that an existing, profitable company cannot just be purchased and taken out of Nova Scotia. - Reinhold Griff

Reinhold Griff, a retired businessman in Middleton, N.S., has also been driving to the farm for years to get mushrooms.

Griff was so upset by the announcement that he dropped by the offices of MLA Leo Glavine and MP Colin Fraser to share his concerns.

"The government should look into this and be able to prevent this," said Griff.

"There should be clauses in purchase and sales agreements between companies that an existing, profitable company cannot just be purchased and taken out of Nova Scotia."