Fonterra said proposed moves would keep plant competitive

Fonterra said proposed moves would keep plant competitive

Fonterra wants to "right-size" a yoghurt production plant in Australia, with a series of moves that will lead to over 30 jobs being cut.

The New Zealand-based dairy group said it had reviewed the site in Echuca and accounted for current volumes and estimates for future production.

Fonterra is proposing to "disestablish" 44 roles at the site, six of which are vacant. The plan will mean 38 staff are made redundant, although Fonterra said it would create seven new roles. The company said there will also be changes to packaging shift patterns at the plant.

"We do not make these decisions lightly, but we need to right-size the site against our current and projected volumes and keep the site competitive for the long term," Fonterra said.

According to the Fonterra website, the plant in Echuca makes yoghurts and desserts under the Nestle, Ski and CalciYum brands.