Bega to close Strathmerton factory, 300 jobs lost

Bega is set to close its Strathmerton factory, with 300 jobs lost. This is what we know so far, including what key dairy figures are saying about the move.

Strathmerton’s largest employer — Bega’s cheese processing site — will close by next year with the loss of 300 jobs.

Bega management confirmed its cheese processing and packaging operations in the Goulburn Valley would be consolidated at Bega in southern NSW, as dairy processors struggle with an influx of imported produce.

Bega forecast $30m in annual savings through the closure of Strathmerton as part of a savings drive to eliminate duplication in its production lines.

The Strathmerton closure comes as global giant Lactalis and Bega position themselves to acquire Fonterra’s Australian operations.

Australian Dairy Farmers president Ben Bennett said while the news was disappointing, it was not surprising given external cost pressures on both primary producers and manufacturers.

“This is the latest wake up call about the pressure that the entire Australian dairy supply chain is under,” he said.

“While Canberra can’t rescue every factory, it can do a lot better at working with the dairy to work out how its policy has weighed down the industry, water buybacks being a prime example. Dairy factory workers lose, dairy farmers lose and the whole community loses.”

Mr Bennett was recently invited by United Workers Union national dairy co-ordinator Neil Smith to address delegates at a recent meeting and said there was a growing appreciation of working together for mutual benefit.

“Anthony Albanese has a huge mandate to govern for all Australians and his government now has to get to work to address how it can help, not hinder, dairy farmers, dairy workers and regional towns dependent on agriculture for their survival,” he said.

Bega Cheese executive Barry Irvin. Photo: Glenn Hunt

Bega chief executive officer Pete Findlay said about 100 new jobs would be created at its NSW main factory as a result of the Strathmerton closure and consolidation.

“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,” he said. “Where possible, we will offer redeployment to employees and continue to support them through this period.”

United Dairyfarmers of Victoria president Bernie Free said while 100 jobs would be gained in NSW, it still represented a net loss of 200 jobs in dairy manufacturing.

“This will hit Strathmerton hard. And not just Strathmerton, the whole range of Goulburn Valley towns within a 50km radius,” he said.

“It has an impact on farmers, the local footy and netball clubs, the local retail and other businesses. We’ve said before the current water buybacks policy not only hits farmers — for every dairy farmer lost to buybacks, six jobs are lost and this is a prime example unfortunately.”

A Victorian government spokesman said Spring Street was “in regular contact with Bega” and that its management had not requested any financial support or assistance regarding the viability of the Strathmerton facility.

“We appreciate this is a difficult time for Bega workers and their families following the company’s announcement that it will close one of its Victorian facilities in Strathmerton next year,” the spokesman said.

“We will offer support to impacted workers through the Jobs Victoria Local Employment Transition Service.”

Liberal MP Wendy Lovell, who represents the northern Victoria region in the state upper house, said Bega needed to redeploy as many staff as possible to the Tatura site.

“It is sadly unsurprising that a company with sites in other states would choose to relocate to New South Wales, where business conditions are more competitive and government policy encourages – rather than punishes – investment and job creation,” Ms Lovell said.

Originally published as Bega to close Strathmerton factory, 300 jobs lost