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Dairy companies that announced plant closures or production relocation in early 2024

World 18.03.2024
Source: The DairyNews
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DairyNews.today summarizes the first quarter of 2024. We have gathered news and articles in one material about closures and restructurings of dairy production facilities of major dairy companies worldwide.
Dairy companies that announced plant closures or production relocation in early 2024
In January, the dairy cooperative Organic Dairy Hub from Waikato, New Zealand, announced voluntary liquidation. The cooperative, formed in 2015, processes milk at various North Island facilities, exporting certified dairy products under the Ours Truly brand, including organic A3 dairy products. The voluntary liquidation statement filed on November 29 is considered solvent, and KPMG liquidators state that all creditors are expected to be fully paid within 12 months.

At the beginning of February, Nestlé announced plans to close its dairy plant in Matagalpa, Nicaragua, citing the need for "effective and productive operations" in the current global conditions. Despite the closure of the dairy plant, Nestlé will maintain its role in purchasing 13% of the country's coffee.

Bega Group, which acquired Betta Milk from TasFoods in December 2023 along with Meander Valley Dairy, now plans to close the Betta Milk dairy processing plant located in Burnie, Northwest Tasmania. This decision is part of a strategic move to consolidate milk processing operations, as the aging Burnie plant gives way to operations being relocated to another company plant in Lenah Valley, near Hobart. However, this restructuring initiative may lead to potential job losses.

Robert Flanagan, representing the Australian Workers' Union (AWU), expressed concern about the impact of this decision on the dairy processing sector in northwest Tasmania.

Tetra Pak announced the closure of its packaging material production in Jurong and the consolidation of production in Singapore at its other factories in the region.

The acquisition by Theo Müller last year of the majority of Royal FrieslandCampina's dairy production business in Germany led to significant changes. The company has now informed approximately 400 employees at the plants in Heilbronn and Schefflenz that both facilities will gradually cease operations by summer 2026.

Also, publishing its annual report, Kerry Group announced openness to offers for the sale of its Irish dairy business. While the Irish dairy business remains relatively unprofitable, CEO Kerry Scanlon emphasized its quality, stating that it "does not yield to any (dairy business) that exists in the world."

Irish dairy giant Ornua, known for producing Kerrygold dairy products, is closing one of its cheese plants in Pennsylvania, putting 66 jobs at risk. The closure of the plant in Lawrence County was announced just days before St. Patrick's Day, plunging employees of the international dairy producer into shock, according to local media.

Later, Ornua announced plans to sell its controlling stake in CoreFX Ingredients, a known supplier of dry food ingredients located in Illinois, USA."
Jon Patterson
Jon Patterson
Owner of Patterson Farms in Cayuga County and director of the Northeast Dairy Producers Association.
Central New York was chosen to host the North American Manure Expo in July 2024. What does that have to do with the Finger Lakes? Everything. Our farmers were identified as industry leaders in sustainability. It is a testament to the environmental stewardship efforts implemented on farms across our region and state.
Ching Yee Lin
Ching Yee Lin
copywriter who focuses on the historical and contemporary issues concerning the Singapore society
Have you ever been told growing up that drinking milk is good for you? Let’s see if the beverage is actually good for you.
April 2024
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