Murray Goulburn axing products as job cuts loom

By Jim Cornall contact

- Last updated on GMT

Some Murray Goulburn products are being dropped as the closure of three plants draws near.
Some Murray Goulburn products are being dropped as the closure of three plants draws near.
In a letter to suppliers, Australian dairy company Murray Goulburn Co-operative Co. Limited (MG) said it is discontinuing several products as job losses take place.

Last month, DairyReporter revealed that three MG facilities would be closed​, with the loss of around 360 jobs.

The company said it will close its Edith Creek facility by Q2 FY18, the Rochester facility by Q3 FY18 and the MG facility at Kiewa by Q1 FY19.  The Rochester and Kiewa closures will begin in August 2017.

MG now says approximately 140 employees will leave MG from the Rochester and Kiewa sites between the end of July and mid-August as production transfers to other sites.

Remaining employees will leave in stages prior to the site closures in mid-February 2018 and June 2018 respectively.

At Edith Creek, production is expected to end by November 30, 2017, and the majority of employees will remain until that time.

MG said that once completed the closures will deliver an annualized net financial benefit of A$40m-A$50m (US$30m-37m).

Products cut

The company said products will be affected by the closures.

Products such as Devondale Milkshakes, 8 Bar, custard, desserts, pet milk, Farmdale flavored UHT milk and co-pack products will be discontinued by the end of November 2017.

Liddells cream cheese and cheese will see production transferred to other sites.

The letter, from supplier relations director Cameron Smith, concluded by saying, “Our number one focus at this time is doing everything we can to restore your confidence in the co-operative and build the competiveness [sic] of Murray Goulburn once again.”

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