By Alexander Darling
Two hundred jobs will be made redundant in Victoria, and another 100 moved to NSW, as part of dairy producer Bega’s plan to wind down operations at one of its Victorian facilities.
On Tuesday, Bega Group announced that its cheese processing and packaging operation in Strathmerton, northern Victoria, will cease to exist by mid-2026.
Bega has announced it is gradually wrapping up operations at its facility in Strathmerton, northern Victoria.
The operation will be folded into an existing facility in Bega, New South Wales.
Bega’s chief executive Peter Findlay said the closure was aimed at simplifying Bega’s footprint and having “globally competitive infrastructure”.
“We are very aware of the impact of this decision, and we are doing our best to manage this transition with care and respect for our Strathmerton employees and the local community,” Findlay said in a statement.
“Where possible, we will offer redeployment to employees and continue to support them through this period”.
In a statement to the Australian Securities Exchange (ASX), Bega Group elaborated that the consolidation was “expected to deliver $30 million per annum of cost savings by eliminating duplication”.
As part of the change, Bega will invest $50 million in its site in Bega “to create approximately 100 jobs in the Bega Valley”.
Once completed, the phased closure will leave Bega with five facilities in Victoria – in Tatura, Morwell, Chelsea, Koroit and Port Melbourne.
Strathmerton, population 1072, has 49 locals employed at the Bega facility as of the most recent census, or about 10 per cent of the working-age population. People in the surrounding towns of Shepparton, Yarrawonga, Cobram, Echuca and Numurkah also rely on the plant for income.
In a statement on Wednesday, Graeme Edmonson, administrator of Moira Shire, said the council would work closely with the community to understand the full impacts of Bega’s decision.
“We will also be calling on both the state and federal governments for immediate and long-term support during this transition period. This includes securing economic transition funding, providing retraining and redeployment opportunities for impacted employees, and working to attract investment that will help create new local job opportunities,” he said.
“Our goal is clear: local jobs created to replace local jobs lost.”
Of the workers affected, The Age understands that 260 of them are United Workers Union-affiliated and 10 are with the Australian Manufacturing Workers Union.
Strathmerton is also known for its Cactus-themed fun parkCredit: Visit Victoria
The UWU’s national dairy co-ordinator Neil Smith said Bega had “questions to answer”.
“In the latest enterprise bargaining agreement negotiations, workers won a community consultation clause,” Smith said.
“So far, the company has not kept their end of the bargain and the union expects genuine consultation with the Strathmerton community to occur in good faith.”
A Bega spokesperson said: “Employees will be offered redeployment opportunities, or redundancy packages where redeployment isn’t possible, as well as access to outplacement and financial advisor services.”
“We are also planning to run activities such as a job fair to facilitate this transition for our people,” they said.
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