Co-op chairman, Paul Hyde, said the decision to leave prior to the extended March 2017 deadline follows discussions with the Department of Lands.

"We were asked to leave earlier than this extension," Mr Hyde said.

"So, once we close the doors, there will be no jobs for the staff, and once all the bills are paid, the shareholders will get a dividend and that's it. And local seafood will not be available through the co-op.

"The minister has asked to come and have a yarn with us and we have no dramas with talking to him."

A spokesperson for the Department of Primary Industries - Lands said the closure date of May 31 was by mutual agreement between the department and the co-operative.

"There is no change to the agreement reached with the Hastings River Fishermen's Cooperative last year," the spokesperson said.

"The Department of Primary Industries - Lands agreed to extend the co-op's licence to the end of March, 2017. This was not an exit date. It was a licence extension to give the co-op more time to arrange their affairs and exit from the site at a time suitable to them.

"The closure date of May 31 this year was by mutual agreement between the Department and the co-op.

"Once the co-op has vacated, the department will manage the demolition of the co-op's building and contribute funds to help the co-op meet the demolition costs."

Mr Hyde said shareholders had investigated the costs to set up at another site but it was "just not viable for the shareholders".

"And it would be stupid to take a fish co-op from the waterfront," he added.

The chairman said fresh local product would now only be sold at the Jerseyville and Laurieton markets but he expected a roll-on effect into the future.

"It was a kick in the guts for us when commercial fishos were taken out of our area. There was a snowball effect that is slowly knocking us over.

"Personally, I will be a fourth generation family going out of the business ... going out of the industry."

Mr Hyde said he was also concerned that the local market will miss out on fresh local seafood.

"I'd encourage people to come down and continue to support us until we close the doors in May.

"The local support has been great and we want to thank everyone."