Lactalis Australia, formerly known as Parmalat, has announced plans to close its Echuca dairy factory, affecting approximately 70 jobs.
The decision comes as part of an $85 million upgrade plan that involves shifting production to the larger regional centre of Bendigo.
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The Echuca factory, located on the border of Victoria and New South Wales, is expected to be closed down this year.
According to Lactalis CEO Mal Carseldine, the decision was made following a thorough review of the company’s Yoghurt and Dessert Divisions.
“Based on this criteria, our Bendigo site was the most suitable option for us to invest in to meet our further needs in Victoria,” Mr Carseldine said.
While the closure of the Echuca factory will impact approximately 70 employees and contractors, Lactalis has stated that some workers will have opportunities for redeployment to other company sites.
“This is not a decision we take lightly,” he said,
Victorian Nationals leader and member for Murray Plains, Peter Walsh, expressed his disappointment, questioning why Lactalis chose to invest in Bendigo rather than Echuca.
“Why did you not invest that money in Echuca? Why invest it in Bendigo?” Mr Walsh said.
“They have had a strong presence in Echuca for a long time, a great place as I understand it, a very loyal workforce there.”
The closure of the Echuca dairy factory adds to a series of recent closures in the dairy processing sector in Australia.
Seven facilities have shut down since August 2022, including Bega’s Betta Milk factory in Burnie and Saputo’s Maffra factory.
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