Dairy giant Lactalis to close Longwarry factory by 2027

• Lactalis plans to close its dairy factory at Longwarry in Victoria’s Gippsland region, citing ongoing operational and financial challenges.
• The shutdown will result in job losses and impact local dairy farmers who supply the plant, creating uncertainty across the regional industry.
• The company says it will support affected workers and suppliers, while industry groups and officials raise concerns about the broader effects on the dairy sector.

Australia’s largest dairy processor has announced it is closing a major dairy factory in the small town of Longwarry in Victoria’s east.

Lactalis Australia said it decided to shut down the West Gippsland site by early 2027 following a “comprehensive review” of its manufacturing network.

The factory in the town of about 4,000 people is well known for producing specialty dairy ingredients and products as well as milk powders.

Lactalis acquired the Longwarry factory in 2019, but its purchase of rival processor Fonterra Australia in 2025 left the business with a surplus of manufacturing sites in Victoria and a lack of milk to supply them all.

“We do not underestimate what this closure means for our Longwarry team and their families,” Lactalis Australia chief executive Mal Carseldine said.

“Our employees have contributed meaningfully to our company and the region, and they have our commitment to support them through this transition. Our priority is to ensure a respectful and transparent consultation process.”

Lactalis said it employed 53 permanent staff at Longwarry, along with a number of casual workers. Lactalis said the decision to close the plant reflects what it calls “operational realities”. As part of its purchase, Lactalis took over …

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Original article and photo by "ABC News"