French dairy giant Lactalis is set to close its yogurt and desserts plant in Australia. The closure of the factory in Echuca, Victoria, will affect approximately 74 employees and contractors. This decision is part of Lactalis’ plan to consolidate its yogurt and desserts business into a single regional hub in Bendigo, Victoria.
To support this restructuring, Lactalis will invest A$85 million ($56.3 million) over three years in its manufacturing and supply chain operations across regional Victoria. The company aims to increase capacity and enhance its focus on environmental sustainability, technology, and automation.
Mal Carseldine, CEO of Lactalis in Australia, explained, “Our long-term strategy to meet future growth goals was formulated following a thorough review of our yogurt and desserts division. The selection of Bendigo as our regional hub was based on factors such as milk processing capability, operating costs, and site layouts.”
Lactalis is currently engaging with employees at the Echuca site to discuss the closure. Carseldine assured that there will be opportunities for redeployment to other Lactalis sites for some employees. The company is committed to a transparent and considerate approach during this transition.
However, Australian Manufacturing Workers’ Union organiser Chris Spinder expressed concern over the decision, stating, “We don’t fully understand the rationale behind the closure. We would have preferred more dialogue before the announcement to address concerns and explore alternatives to save the site.”
In recent years, Lactalis has faced legal challenges, including a fine of A$950,000 for breaching Australia’s dairy code of conduct in the 2020-21 milk season. Despite these challenges, the company remains focused on its long-term growth and operational efficiency in the food and beverage industry.
As Lactalis navigates these changes, it continues to uphold its commitment to quality and innovation in the food and drink business. Stay informed about industry trends and developments by subscribing to our daily news round-up for leading insights and analysis.
