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FoodBev Media

12 April 2024

Lactalis to close dairy facility in Australia

Lactalis to close dairy facility in Australia

Lactalis has announced the closure of its Echuca, Victoria, Australia, facility, resulting in the loss of approximately 74 jobs. The announcement followed the company's decision to relocate its yogurt and dessert processing operations to its Bendigo site, also situated in Victoria. In addition, Lactalis unveiled plans to invest AUD 85 million (approx. $55.5 million) into upgrading its manufacturing and supply chain operations across regional Victoria over the next three years. The investment is expected to increase the company's capacity while driving a heightened emphasis on environment, technology and automation, all aimed at optimising the use of existing production lines. Lactalis CEO Mal Carseldine explained that despite the company's plans to expand its operations in Victoria, there are, unfortunately, plans to close its Echuca factory later this year. He said: “Our long-term plan to meet future growth aspirations was made after a detailed review of our yogurt and desserts division. The plan sees us having one fully utilised regional hub in Victoria. Our selection of which site considered milk processing capability, operating costs and site layouts." "Based on this criteria, our Bendigo site was the most suitable option for us to invest in to meet our future needs in Victoria." "We are now consulting with our Echuca team about these decisions, including how to best support them through the implementation. I am committed to genuinely listening to our team and considering their input as we work through this." The closure has the potential to affect around 74 employees and contractors. Carseldine added: "This is not a decision we take lightly. For some employees there will be opportunities for redeployment to other Lactalis sites and those opportunities will form part of the discussions with individual employees." “I want to acknowledge the contribution of the Echuca team, and the decision is by no means a reflection of their efforts." According to Lactalis, the additions to the Bendigo facility will result in an increase in employment opportunities, the implementation of a new production line and an expansion of yogurt and custard production capacity.

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