JOBS are expected to be axed at an Evesham produce packing firm after it lost business worth £26 million.

Primafruit, which imports and packs fresh fruit and produce for supermarkets, has been told by Asda its services are no longer needed by the supermarket group.

It is not yet clear how many jobs will go at the family-owned firm, which employs about 140 people in Enterprise Way on Vale Business Park.

Operations manager, Sean Foy, said it was almost inevitable that some workers would lose their jobs as the company has to reduce costs by £1.6m this year.

A last-ditch attempt to suggest other savings, rather than making staff redundant, was made at a meeting yesterday. These were expected to be presented to the board of directors by tomorrow.

Speaking last Monday, Mr Foy said: "This contract was a third of our business and it means we've got to make savings of about £1.6m this year in terms of costs.

"It's almost inevitable there are going to be some redundancies."

Managing director Craig Huth said: "I am very disappointed to lose the Asda business.

"We are talking to our staff over the next few weeks to decide how best to move forward."

Paul Farrell, soft fruit selector for Asda, said: "No decisions have been made on our rationalisation programme but we are going through a process."