Lactalis to Close Longwarry Dairy Factory by 2027

Lactalis Australia, the country's largest dairy processor, will close its Longwarry factory in Victoria by early 2027. The decision was made after a comprehensive review of its manufacturing network, which revealed a surplus of production sites following its acquisition of Fonterra Australia in 2025.

The Longwarry facility, located in a town of about 4,000 residents, is known for producing specialty dairy ingredients and milk powders. Production from this site will be transferred to Lactalis's Darnum factory and other facilities across Victoria and Australia. The Darnum plant, about 20 minutes from Longwarry, operates at 70% capacity and features more modern infrastructure with potential for growth.

Neil Smith, the national dairy coordinator for the United Workers Union, reported that approximately 49 employees work at the Longwarry site. A phased closure will occur, starting with partial shutdowns in August and November, with complete closure expected in the first quarter of next year. Mr. Smith noted that the staff were in shock, as the complete closure was unexpected.

Lactalis has assured dairy farmers that the closure will not impact milk supply contracts. Mal Carseldine, CEO of Lactalis Australia, emphasized the company's commitment to the region, highlighting their employment of over 2,000 people in Victoria. The company is working to ensure a respectful and transparent consultation process for the affected employees.