Australian dairy co-op Murray Goulburn is to close one of its cheese sites in the state of Victoria.

The company told just-food yesterday (3 February) that its facility in Leitchville faced closure after eight years of drought in the region. Some 80 employees will be affected.

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“It just wasn’t viable to continue to have four sites in the region, so it will be rationalised down to three,” a Murray Goulburn spokesperson said.

Murray Goulburn is one of two bidders for Australian cheese and dairy ingredients group Warrnambool Cheese and Butter Factory.

The co-op’s offer has been criticised by WCB, which has said the bid does not reflect the current or future value of the business.

WCB has also rejected an offer from a second party, which is from an unnamed bidder.

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