Saputo Australia unclear over future of dairy processing sites

Saputo shut down their Maffra factory with little warning. Now a cloud hangs over their other factories nationwide.

Saputo has refused to rule out fresh factory closures with heightened speculation that the Canadian company will swing the axe in Australia.

Montreal-based management have left the door open to further closures with company supremo Lino Saputo Jnr making no secret of his frustration with Australia’s shrinking milk pool.

Dairy Farmers of Victoria president Mark Billing said Saputo needed to be clearer about its future in Australia.

He urged the Canadian company not to repeat its conduct last year, when it closed its Maffra factory. “The way the Maffra closure was handled was pretty poor. We’re talking about people’s jobs, people’s livelihoods here,” Mr Billing said.

Lino Saputo Jr in 2018.

Last year, more than 70 people lost their jobs in Maffra when Saputo made sweeping cuts to its Gippsland operations.

Bulk powder production at its Leongatha site and cheese packaging at Mil-Lel, near Mount Gambier, was also shut down.

Earlier in 2022, Saputo closed its cheese slice line at the Cobram factory in northern Victoria.

Saputo is also in the process of selling its Laverton and Erskine Park processing sites, subject to regulatory approval.

“If Saputo are planning further cuts, they need to state where, when and how,” Mr Billing said. “So far, they’ve provided little detail about their future here.

“That’s not fair on the people that work in the factories, the truck drivers, the suppliers, the communities that rely on Saputo directly and indirectly.”

A spokeswoman for Saputo said the processor was “continually working to ensure it has the right manufacturing footprint”.

“Saputo Dairy Australia has been set the challenge to right size its manufacturing network to further strengthen its market competitiveness as a high-quality, low-cost processor,” she said.

“In line with Saputo’s Global Strategic Plan and Australia’s declining industry milk pool, analysis of SDA’s network optimisation opportunities remains ongoing.

“At this time, beyond the previously announced SDA network optimisation activities, no decisions have been made regarding its manufacturing footprint.

“SDA has a long-term vision for success in Australia and continues to invest in its network as part of its ongoing commitment to the Australian dairy industry.”