More than 140 jobs will be lost in the Goulburn Valley town of Tongala in Victoria after food company Nestle’s decision to stop powdered milk production, according to the Australian Broadcasting Corporation.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more


A further 84 jobs at the company’s Tongala factory are also in question as the company decides whether to continue in liquid milk production, ABC said.


The move comes as New Zealand dairy company Fonterra consolidates its presence in Australia with a full takeover of the Bonlac group. Fonterra will also take over Nestle’s milk suppliers in the Tongala area.


Campaspe Shire Councillor Neil Repacholi said the Nestle job losses are a devastating blow to the town of 1,200 people. “It’s come at a bad time, we are in the middle of the severest drought the region has seen,” he said. “The loss of 140 jobs, is a bitter blow to the town to swallow.”


Nestle has indicated the jobs will be phased out in September.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Just Food Excellence Awards - Nominations Closed

Nominations are now closed for the Just Food Excellence Awards. A big thanks to all the organisations that entered – your response has been outstanding, showcasing exceptional innovation, leadership, and impact.

Excellence in Action
Winning five categories in the 2025 Just Food Excellence Awards, Centric Software is setting the pace for digital transformation in food and FMCG. Explore how its integrated PLM and PXM suite delivers faster launches, smarter compliance and data-driven growth for complex, multi-channel product portfolios.

Discover the Impact