ABC Rural

Topic: Food and Beverage Processing Industry

Wednesday, 22 July 2026 at 3:02 pm

Wednesday, 22 July 2026 at 5:26 pm

The Longwarry dairy factory will close in early 2027.

In short:

Dairy company Lactalis will close its Longwarry factory in Gippsland, Victoria.

The company will move production to its Darnum plant and other sites.

What's next?

The closure will be complete by early 2027.

Lactalis, Australia's largest dairy processor, is closing its Longwarry factory.

Lactalis decided to close the West Gippsland site after reviewing its manufacturing network.

The Longwarry factory produces specialty dairy ingredients, products, and milk powders.

Lactalis bought the Longwarry factory in 2019, but its purchase of Fonterra Australia in 2025 led to a surplus of sites.

Lactalis CEO Mal Carseldine said the company understands the impact on its Longwarry team.

Lactalis will support its employees through the transition.

The company's priority is a respectful and transparent consultation process.

Lactalis has 53 permanent staff and some casual workers at Longwarry.

Lactalis took over Fonterra in 2025.

The decision to close the plant reflects operational realities.

Lactalis acquired the Darnum factory as part of its purchase of Fonterra.

Production at Longwarry will move to Darnum and other Lactalis sites.

Longwarry operates at 40% capacity, while Darnum operates at 70%.

The Darnum plant has modern infrastructure and growth potential.

Phased closure

United Workers Union's Neil Smith said all staff will be gone once the site shuts.

Mr Smith said there will be a phased closure, with the site fully closed by early 2027.

Mr Smith doubts many jobs will be transferred to Darnum.

Lactalis is meeting with staff to discuss options and availability at Darnum.

The staff are in shock.

The staff thought part of the site might close, but not the whole site.

Neil Smith said multinationals consolidate when they acquire other businesses.

There are 49 workers at the Longwarry dairy factory.

Lactalis assured dairy farmers that the closure will not affect milk supply contracts.

Lactalis remains committed to Victoria.

Lactalis employs over 2,000 people and invests in manufacturing and regional communities.

The company will phase out manufacturing at the site by early 2027.

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