Bega Group is relocating the production of the Betta Milk and Pyengana Dairy brands to its own factory in Hobart, Australia. This move follows the company’s acquisition of assets from fellow Australian group TasFoods last year. Until now, the production of the mentioned brands took place at a site in the Tasmanian town of Burnie.
In a statement, Bega confirmed that the production will move to their site in Lenah Valley in Hobart in March. The company also mentioned that customer service and logistics will be integrated into their existing supply chain. Bega’s other Tasmanian manufacturing site in Kings Meadows will continue to operate as normal, it said, “given the site’s unique capabilities.”
However, this relocation will result in 62 employees losing their jobs. Bega said that it is providing affected employees with redundancy packages and exploring redeployment opportunities. Pete Findlay, Bega’s CEO, mentioned that the move was “not an easy one to make, and we are working hard to manage this change respectfully with all employees, suppliers, customers, and partners.”
The Australian Workers Union (AWU), representing some of the affected workers, expressed concern stating that “The Betta Milk operation has had a footprint in Burnie for 70 years and has been a part of the fabric of that community over those years so it’s devastating the factory will be closed.”
The AWU has held talks about possible employment opportunities with dairy groups Saputo and Fonterra, who both have production sites in Tasmania. The AWU confirmed that negotiations were still ongoing.
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