Jobs lost Longwarry
by Courtney O'Brien
Up to 60 jobs will be lost at Longwarry Food Park with Lactalis Australia announcing closure of the site last Wednesday, following a review of its manufacturing network.
Activity will be gradually reduced and phased out over the coming months, ahead of the final closure in the first half of 2027.
The closure will impact 53 regular employees and a number of casual employees.
Opportunities for redeployment within the Lactalis network will be offered where available.
"We do not underestimate what this closure means for our Longwarry team and their families," Lactalis Australia chief executive officer Mal Carseldine said.
"Our employees have contributed meaningfully to our company and the region, and they have our commitment to support them through this transition. Our priority is to ensure a respectful and transparent consultation process."
The French owned multi-national stated the decision reflected clear operational realities.
The company stated its Longwarry facility operates at about 40 per cent capacity, while Darnum operated at about 70 per cent capacity and has more modern infrastructure, ongoing investment and significant growth potential.
Production undertaken at Longwarry will be transferred to Darnum and other sites.
The Australian Dairy Farmers (ADF) said the closure reflected mounting pressures facing Australia's dairy industry.
ADF president Ben Bennett said the news was first and foremost about people, acknowledging the pain the decision would cause workers, their families and the local businesses that relied on the site.
"It will take time for the employees, their families and the Longwarry community to come to terms with today's decision," Mr Bennett said last week.
"While this is a commercial decision by Lactalis, it is another reminder that Australia's dairy industry is operating in an increasingly challenging environment."
During the ACCC's assessment of Lactalis' acquisition of Fonterra in 2025, the ADF raised concerns about increasing consolidation across the dairy industry and the importance of maintaining strong competition and regional processing facilities.
Mr Bennett said the decision reinforced why competition and processing capacity mattered.
"Every factory that closes undermines dairy communities and makes the industry that little bit smaller.
"Governments cannot keep saying they support food security, sovereign manufacturing and stronger regional communities while making it harder and more expensive to make food in this country.
"Rising energy prices, increasing regulation, growing compliance obligations, escalating input costs and trade settings that expose Australian producers to heavily subsidised imports are steadily eroding Australia's dairy industry," he said.
Mr Bennett said the dairy industry needed governments to stop adding costs and start backing Australian dairy.
"Unless these underlying issues are addressed, Australia will continue to lose investment, dairy factories, jobs and, ultimately, dairy farms.
"No one wants to see more factories close or more dairy farms disappear from regional Australia. We need policies that strengthen the competitiveness of Australia's dairy industry before more communities feel the impact.
"Today it's one factory, but this should concern every Australian who wants to keep seeing fresh Australian dairy products on supermarket shelves and in their fridges."
Lactalis has confirmed there will be no disruption to product availability, quality, or existing milk supply contracts with dairy farmers.