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Major fruit and vegetable grower Perfection Fresh says it will cut a "significant" number of jobs, due to the impact of a virus that has been detected in its tomato plants.
The company is one of three businesses hit by tomato brown rugose fruit virus (ToBRFV) that has been placed into quarantine by the South Australian government, along with Gawler River Tomato and South Australia Tomatoes.
It is the first time the virus has been detected in Australia.
Production Fresh has previously warned that South Australian government biosecurity restrictions could result in the loss of up to 500 employees.
The outbreak has led to Western Australia and Queensland banning SA tomatoes, while New South Wales is only dealing with businesses in the clear.
South Australia's Premier Peter Malinauskas said the government had to take the action because virus reduces a tomato plant's productivity by up to 75 per cent.
Peter Malinauskas says virus-affected tomatoes are safe to eat. (ABC News: Ashlin Blieschke)
"If you had a tomato plant that was producing four tomatoes, the virus will mean it will now only produce one," Mr Malinauskas said.
"That of course has grave consequences for the tomato industry throughout the country.
"The decision to quarantine those three facilities are all about seeking to contain the virus with the view to eradicate it."
The premier said the state government had established a worker assistance hub, which will open at the Virginia Horticultural Centre at 9am on Thursday.
Mr Malinauskas said the centre will help affected workers — some of whom come from the Pacific Islands — access Centrelink and charities in English and other languages.
"The responsibility of government is to make sure we protect a $230 million industry," he said.
Primary Industries Minister Clare Scriven said it was possible to eradicate the virus because it had only so far been detected at three sites.
"Other states, if we were not to get on top of this or we were not to put these quarantines in place, they would potentially close to the doors to South Australian tomatoes," Ms Scriven said.
"At the moment, the evidence is only showing detections in three businesses. So, on that basis, eradication is entirely possible."
Clare Scriven says it is possible to eradicate the disease. (ABC Rural: Eliza Berlage)
In a statement, Perfection Fresh chief executive Michael Simonetta said the state government's decision to lockdown its tomato operations in Adelaide's north was "entirely unnecessary" because the virus had been contained.
"The impact of the lockdown on our employees and their families is simply devastating," Mr Simonetta said.
"With no timeline for when the lockdown might be lifted, we have no choice but to stand down workers, some of whom have been with us for many years."
The virus affects tomatoes, capsicums and chillies and is spread through infected seeds, plants, cuttings, plant-to-plant contact and through touch transmission.
The outbreak has led to WA and Queensland banning SA tomatoes. (Supplied: PIRSA)
Perfection Fresh is one of Australia's largest fruit and vegetable producers and the outbreak has resulted in hundreds of tonnes of tomatoes being destroyed, and concerns tomato prices will rise in parts of the country.
Affected tomatoes might appear mottled or brown, but are safe to eat.
"The virus does not in any way compromise the health of the tomatoes for human consumption," Mr Malinauskas said.
"There is nothing about the virus that does something to a tomato that makes it unsafe for human consumption.
"There is no reason why South Australians should stop purchasing tomatoes. They're perfectly healthy and in fact we actively encourage people to continue to do so."