French dairy multinational Lactalis is shutting a dairy manufacturing site in Australia.
In a statement yesterday (20 January), the company said the move follows a “detailed review of its operations and long-term manufacturing footprint across Australia”.
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The facility in South Brisbane is scheduled to close in July.
Lactalis said its decision “reflects changes to the surrounding precinct and the site’s suitability for long-term manufacturing operations” in addition to “challenges associated with ageing infrastructure that would require substantial investment to modernise and remain compliant over time”.
Production at the plant will be gradually moved to the company’s other facilities in Queensland and other states.
Mal Carseldine, CEO at Lactalis Australia, said: “Our South Brisbane site has a long history, but its location and infrastructure no longer align with the requirements of a modern, efficient manufacturing network.”
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By GlobalDataCarseldine acknowledged the consequences for workers. “We also recognise the impact this decision will have on the South Brisbane team, many of whom have contributed to the site and the Pauls business for decades,” he said.
Just Food has asked Lactalis how many positions would be affected, but the group had not provided figures at the time of publication. Local reports suggest close to 200 jobs are affected by the closure.
Lactalis Australia produces a broad range of dairy products under brands including Pauls Milk, Ice Break Iced Coffee, Tamar Valley and Vaalia yoghurt, and Oak and Breaka flavoured milks.
The company, which sources milk from more than 330 farmers across Australia, said the closure will not alter current milk supply contracts with its dairy farming partners.
“This decision does not reflect a reduction in our commitment to Australia or Queensland” Carseldine added.
Lactalis said it continues to “invest significantly” in its Australian operations, noting more than A$200m ($135m) has been earmarked to upgrade and modernise its manufacturing sites in the country through 2025–26.
Just Food has also contacted the Australian Workers’ Union for comment, which had not responded at the time of writing.
The Brisbane closure follows other portfolio and footprint changes for the French dairy group.
In July, Lactalis revealed plans to close its plant-based drinks facility in Ontario, Canada. At the time, the company said the closure of that site would mark its “full exit” from the plant-based drinks market in Canada.
In August, Lactalis sealed the acquisition of the consuming-facing assets of New Zealand-headquartered Fonterra.
The transaction includes Fonterra’s global consumer dairy business, excluding Greater China, and brands such as Mainland, Anchor, and Perfect Italiano. It also takes in the co-op’s foodservice and ingredients businesses in Oceania and Sri Lanka, along with the Middle East and Africa out-of-home business.
