French dairy multinational Lactalis is set to close its dairy manufacturing facility in Australia, as announced in a statement on January 20. This decision follows a thorough review of the company’s operations and long-term manufacturing strategy across Australia.
The South Brisbane facility is anticipated to cease operations in July. Lactalis indicated that this closure is a response to evolving conditions in the surrounding area and the site’s decreasing suitability for modern manufacturing. Additionally, the company cited challenges linked to outdated infrastructure, which would require significant investment to modernize and ensure compliance.
Production from the South Brisbane plant will transition to Lactalis’s other facilities across Queensland and beyond. Mal Carseldine, CEO of Lactalis Australia, remarked, “Our South Brisbane site has a long history, but its location and infrastructure no longer align with the requirements of a modern, efficient manufacturing network.”
Carseldine also acknowledged the ramifications for employees. “We also recognize the impact this decision will have on the South Brisbane team, many of whom have contributed to the site and the Pauls business for decades,” he stated.
While Just Food has inquired about the number of positions affected, Lactalis had not provided specific figures at the time of publication. Local reports suggest that nearly 200 jobs could be impacted by this closure.
Lactalis Australia is known for its extensive range of dairy products under various brands, including Pauls Milk, Ice Break Iced Coffee, Tamar Valley, Vaalia yoghurt, and Oak and Breaka flavored milks. The company sourced milk from over 330 dairy farmers across Australia, and the closure will not affect existing milk supply contracts with its partners. “This decision does not reflect a reduction in our commitment to Australia or Queensland,” Carseldine added.
In its ongoing commitment to the Australian market, Lactalis plans to invest over A$200 million (approximately $135 million) to upgrade and modernize its manufacturing operations through 2025–26.
For context, this closure in Brisbane follows other strategic adjustments within Lactalis’s portfolio. In July, the company announced plans to shutter its plant-based drinks facility in Ontario, Canada, marking its “full exit” from that market. In August, Lactalis successfully acquired the consumer-facing assets of New Zealand’s Fonterra, while also securing the co-op’s foodservice and ingredient operations in Oceania, Sri Lanka, the Middle East, and Africa.
