Lactalis Will Close Longwarry Plant Next Year

Lactalis plans to close its Longwarry dairy-processing plant in Victoria next year. The decision concerns approximately 40 to 50 employees working at the factory and represents a significant change for the surrounding township, where the site has supported local economic activity for decades.

The company has told farmer-suppliers that the closure will not alter milk collections or farmgate supply contracts. Local community leaders and farmer representatives nevertheless expressed concern about the consequences for workers’ families and businesses that rely on activity connected with the plant.

Lactalis said the decision forms part of a consolidation prompted by uneven use of processing capacity in Victoria. The Longwarry facility, which is ageing and situated within the town’s residential area, was operating at about 40% of capacity, according to the company.

Milk-processing volume can instead be accommodated at Lactalis’s Darnum facility, which was operating at roughly 70% capacity. Lactalis described Darnum as a newer, high-technology site with continuing capital investment and sufficient available capacity to take additional volume while maintaining operating efficiencies.

Ben Bennett, president of Australian Dairy Farmers, and other peak industry bodies said the planned shutdown illustrated broader pressure on Australia’s domestic dairy-manufacturing base. Industry representatives cited higher energy tariffs, demanding regulatory and compliance requirements, increased labour costs and competition from subsidised imported dairy products as challenges for processor profitability and regional processing centres.