Fonterra’s $3.4bn Lactalis Deal Sparks Factory Closure Concerns in Victoria
Sourse: dairynews.today
Australian farmers and unions express deep concerns over potential factory closures following the sale of Fonterra's assets to Lactalis, casting uncertainty over Victoria's dairy sector.
As news broke of Fonterra's $3.4 billion sale of its Australian operations to Lactalis, anxiety has gripped the local dairy industry. The sale marks the end of Fonterra's two-decade presence in Australia, raising fears about the future of key Victorian factories in Cobden, Stanhope, Darnum, and Bayswater. Farmers and unions have voiced strong concerns that the consolidation could lead to major disruptions, including plant closures akin to the Bega Group's recent shutdown in Strathmerton. Bernie Free, President of the United Dairyfarmers of Victoria, highlighted the lack of communication from the new ownership as a significant issue, creating a climate of speculation and mistrust.
The United Workers Union (UWU) has expressed its opposition to the deal and is demanding assurances from both Fonterra and Lactalis to safeguard jobs and prevent site closures. Neil Smith of the UWU emphasized that regional dairy site closures would devastate local communities and the families dependent on them. Moreover, stakeholders fear the move could alter the competitive landscape for raw milk procurement, reducing bargaining power for farmers and limiting consumer choices by eroding brand diversity. The transaction, awaiting approval from Fonterra’s New Zealand farmer-shareholders and regulatory bodies, including the New Zealand Overseas Investment Office and the Australian Foreign Investment Review Board, is set for completion in the first half of 2026. However, until then, the Victorian dairy industry's future remains uncertain, overshadowed by the silence from Lactalis.
The United Workers Union (UWU) has expressed its opposition to the deal and is demanding assurances from both Fonterra and Lactalis to safeguard jobs and prevent site closures. Neil Smith of the UWU emphasized that regional dairy site closures would devastate local communities and the families dependent on them. Moreover, stakeholders fear the move could alter the competitive landscape for raw milk procurement, reducing bargaining power for farmers and limiting consumer choices by eroding brand diversity. The transaction, awaiting approval from Fonterra’s New Zealand farmer-shareholders and regulatory bodies, including the New Zealand Overseas Investment Office and the Australian Foreign Investment Review Board, is set for completion in the first half of 2026. However, until then, the Victorian dairy industry's future remains uncertain, overshadowed by the silence from Lactalis.
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