Sixty new jobs are to be created at Wykeham as a result of restructuring at the Produce World Group.
The company intends forming a joint venture growing, harvesting, packing and marketing brassicas with Lincolnshire Field Products (LFP), based at Wykeham.
Once formed the joint venture would be responsible for all growing and harvesting, with processing and packing taking place at Wykeham.
As a result of the restructuring, Produce World Group has proposed the closure of its site at Butterwick and some job losses are expected.
Produce World has also announced that it proposes closing its factory at Swinderby and moving all processing and packing of conventionally grown root vegetables to its site at Isleham.
Neil Fraser, executive chairman, said: “At Produce World we are growing our business and developing a structure which will enable us to meet the current and future challenges in the industry.
“We are operating in a low margin business and more consolidation across the industry is inevitable. At the same time our customers are experiencing a period of unprecedented competition and changing consumer shopping habits. We have acted to ensure we can meet these challenges and make the Produce World Group sustainable for the future.
“We are committed to the long-term for the business and for fresh vegetable growing in Lincolnshire.
“Our roots business at Isleham already operates successfully as a joint venture with Tompsett Burgess Growers and this is the model we plan to use with LFP.”