The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry
Bega Cheese has announced plans to close its Strathmerton, Australia, cheese processing and packaging facility by mid-2026, consolidating operations at its Ridge Street site in Bega, New South Wales.
The move is part of a broader effort to streamline operations and improve cost efficiency. Bega expects the consolidation to deliver AUD 30 million (approx. 19.4 million) in annual cost savings once complete, driven by reduced duplication and lower fixed costs.
Bega Group's CEO, Pete Findlay, said today: “As the business maintains its focus on delivering productivity improvement and growth, we continue to look at opportunities to simplify our operational footprint and invest for the future ensuring we maintain globally competitive infrastructure”.
To support the transition, the company will invest approximately AUD 50 million (approx. $32.4 million) to upgrade the Ridge Street facility. This investment will be funded through Bega’s regular capital expenditure programme.
The closure will result in a non-cash impairment of AUD 30 - AUD 40 million related to Strathmerton’s assets, alongside one-off cash costs of AUD 30 - AUD 40 million, primarily linked to redundancies.
Around 300 roles will be impacted, though Bega has committed to supporting affected employees and offering redeployment where possible. The company expects an earnings per share improvement of two Australian cents once the integration is complete.
The expansion at Ridge Street is projected to create around 100 new jobs in the Bega Valley.
Despite the closure, Bega will maintain a significant presence in Victoria, continuing operations at five other sites – Tatura, Morwell, Chelsea, Koroit and Port Melbourne – employing more than 1,700 people in the state.
Operations at Strathmerton will continue until mid-2026 to allow for a phased transition and minimise disruption.