Lactalis closes Echuca plant: 74 jobs lost.

Lactalis has joined the growing list of dairy processors closing plants or rationalising operations in the last 18 months.

French dairy giant Lactalis is shutting down its Echuca plant, with the loss of 74 jobs, while expanding its Bendigo operation.

French dairy giant Lactalis has announced it will close its Echuca processing plant with the loss of 74 employees and contractors, focusing instead on an $85 million expansion of its Bendigo site.

The closure comes in the wake of at least a dozen dairy processors going under, being sold or facing crippling losses over the past 18 months as costs bite and imports surge.

Australian Dairy Products Federation chief executive Janine Waller said “supermarkets, cafes and consumers are filling their fridges with imported dairy products because it’s cheaper to produce and cheaper to buy”.

Lactalis chief executive Mal Carseldine said although the company was set to grow its operations in Victoria, unfortunately, there were plans to close its factory in Echuca this year.

“Our long-term plan to meet future growth aspirations was made after a detailed review of our yoghurt and desserts division,” Mr Carseldine said.

“The plan sees us have one regional hub in Victoria that is fully utilised. Our selection of which site considered; milk processing capability, operating costs and site layouts.

“Based on this criteria, our Bendigo site was the most suitable option for us to invest in to meet our future needs in Victoria.”.

He said the company was consulting with its Echuca team on how best to support them through the closure.

“I am committed to genuinely listening to our team and considering their input as we work through this,” Mr Carseldine said.

“The closure could impact approximately 74 employees and contractors. This is not a decision we take lightly.

“For some employees there will be opportunities for redeployment to other Lactalis sites and those opportunities will form part of the discussions with individual employees.

“I want to acknowledge the contribution of the Echuca team and the decision is by no means a reflection of their efforts.

Mr Carseldine said the $85m investment, focused on Bendigo, was a demonstration of Lactalis’ commitment to Australia and confidence in the dairy industry.

He said the additions to the Bendigo facility would see more jobs, a new production line, and more yoghurt and custard capacity.