Lactalis plans to close another facility in Australia in what the France-headquartered dairy giant said “reflects clear operational realities”.
Production from the doomed site in Longwarry in Victoria will be transferred to the privately-owned company’s factory in Darnum in the same state.
Operations will be gradually wound down at Longwarry with a view to its final closure in the first half of next year.
A spokesperson for Lactalis told Just Food that 53 full-time positions will be affected, along with an unspecified number of “casual” workers.
“We will work closely with employees and their representatives throughout this period to explore redeployment opportunities where available and provide support to team members,” the spokesperson added.
Explaining the decision in a statement, Lactalis said Longwarry “currently operates at approximately 40% capacity, while Darnum operates at approximately 70% capacity and has more modern infrastructure, ongoing investment and significant growth potential”.
In January, the company announced plans to close its site manufacturing the Pauls dairy brand of milk, yogurt and creams in South Brisbane.
The closure of Longwarry follows a “comprehensive review of its manufacturing network”, Lactalis said in the statement.
“Subject to the completion of the consultation process with impacted employees, production currently undertaken at Longwarry will be transferred to Lactalis-Mainland Dairy’s Darnum facility and other Lactalis sites across Victoria and Australia,” it added.
Asked by Just Food to confirm what products and brands are produced at Longwarry and how many facilities the business will have in Australia post the closures, Lactalis said it would not be sharing any more information.
However, Lactalis gave an essence of its remaining presence in Australia in the Longwarry closure announcement.
“This consolidation will improve efficiency and environmental outcomes while maintaining dairy production in Victoria and Australia.
"Lactalis has invested more than A$100 million [US$69.9m] at Bendigo, is investing A$35 million at Lidcombe, and has committed more than A$200 million to modernising manufacturing facilities across Australia through 2025–26,” Lactalis said.
“These investments reflect Lactalis’ long-term confidence in Australian dairy manufacturing and its continued commitment to local production, regional jobs and supply chain capability.”
As well as Pauls, other dairy brands produced by Lactalis in Australia include Oak, Breaka, Ice Break, Tamar Valley and Vaalia.
Mal Carseldine, the CEO for the Australia unit, said: “We do not underestimate what this closure means for our Longwarry team and their families. Our employees have contributed meaningfully to our company and the region, and they have our commitment to support them through this transition.
“Lactalis remains deeply committed to Victoria. Alongside Lactalis–Mainland Dairy, we employ more than 2,000 people and continue to invest in manufacturing capability and regional communities.”
Also in Australia, Lactalis’ Golden North Country Fresh and Ferguson Valley WA Dairy Fresh milk were pulled up by the country’s industry watchdog earlier this month for “misleading” claims.
Lactalis was fined A$59,400 in relation to three “infringement” notices issued by the Australian Competition and Consumer Commission (ACCC), which accused the company of “allegedly making false or misleading representations” in relation to fresh milk.
The ACCC said the products concerned were labelled as fresh milk when they each “contained substantial amounts of powdered reconstituted ingredients”.
