Australian dairy cooperative Murray Goulburn said today (2 June) it is scrapping some of its products later this year following its decision to close three processing sites.
The cooperative announced the closures and the loss of around 360 jobs last month, as part of a raft of cost-cutting measures to combat the effect of falling milk supplies in the wake of a review of its assets and distribution network.
Today, Murray Goulburn said “products such as Devondale Milkshakes, 8 Bar, custard, desserts, pet milk, Farmdale flavoured UHT milk and co-pack products will be discontinued by the end of November 2017”.
Meanwhile, production of Liddells cream cheese and cheese will be transferred to other sites.
In a letter to suppliers, Murray Goulburn supplier relations director Cameron Smith confirmed around 140 employees will leave the cooperative’s Rochester and Kiewa sites between the end of July and mid-August as production transfers to other sites.
“Remaining employees will leave in stages prior to the site closures in mid-February 2018 and June 2018 respectively,” Smith said. “At Edith Creek production is expected to finish by the end of November this year and the majority of employees will remain until that time.”
Last month, Murray Goulburn announced the appointment of David Mallinson as CFO with effect from 1 June. Mallinson, who joined the group in 2013, was most recently Murray Goulburn’s CEO, a position he held on an interim basis after the departure of Gary Helou last April and the appointment to that post of former SABMiller exeuctive Ari Mervis earlier this year.