Fonterra Australia sale: Cobden awaits news on factory future

Famed for Western Star butter, Cobden locals are hopeful Fonterra’s exit from the town will keep the brand alive.

In refrigerators from Coolangatta to Kalgoorlie, there’s usually a tub of ‘Cobden gold’ ready to spread.

Cream has been churned into Western Star butter in Cobden for decades, with Fonterra the latest custodian of the famed brand.

But now with Fonterra seeking to exit the Australian market, a new operator is set to appear atop the processing site for the first time since Bonlac departed.

Dairy farmers Robert Campbell, Bernie Free and Ben Bennett with Corangamite Shire mayor Kate Makin, Progressing Cobden members Milton Parlour and Barbara Cowley, dairy farmer Jo Harper and Corangamite Shire councillor Jo Beard. Picture: Nicole Cleary

Progressing Cobden member Milton Parlour said the Western Star brand and advertising campaign had put the town on the national map.

“Travel anywhere around Australia and you’ll see the Western Star sachets of butter or the tubs in the supermarket fridges. It’s well-known across the country,” he said.

“The butter factory has been the biggest employer in Cobden for generations. It’s not just the factory workers or the farmers, it also indirectly employs people in retail and other services.

“The hope is an Australian buyer takes on the Cobden factory. I understand it’s a profitable business and has a lot of potential into the future.”

Western Star was originally produced a century ago in Warrion, north of Colac, before being processed in the now-defunct Bonlac Cororooke plant.

But dairy manufacturing in Cobden stretches as far back as 1888.

Corangamite Shire mayor Kate Makin said the Cobden factory was a major direct and indirect employer in the region.

“It’s important for not only the dairy industry but the wider region that the factory remains operational, so we’re watching developments closely,” Cr Makin said.

“The whole process could take 18 months, we’ve received communication from Fonterra, but obviously it’s early in the process. Fonterra have been supportive with a range of community projects in the past, so we want to keep the lines of communication open.”