In short:
Strathmerton residents say they are devastated by the news Bega Cheese will close its manufacturing site in the town.
A phased closure is expected to be complete by mid-2026, with about 300 jobs cut.
What’s next?
The company says it will upgrade and create new jobs at its factory in Bega.
Maree Hodgson has worked at Strathmerton’s cheese factory for more than 30 years.
She has been left in disbelief at Bega Cheese’s announcement on Tuesday that it will close its northern Victorian site by mid-2026.
“I think we’re all shattered, confused and upset at this point,” she said.
Bega Cheese says it will offer redeployment where possible to staff. (ABC South East NSW: Chris Sheedy)
“There is a young lady who is very heavily pregnant and her husband who both work here and they’ve just purchased a house,” she said.
“How are they going to manage?
“We’re all living through the crisis of not being able to afford stuff and this is just going to add to that.”
Ms Hodgson’s colleague Tony Rowan was due to clock up 23 years at the site later this year.
“It’s very surreal at the minute. There were a few tears yesterday from some people,” he said.
Mr Rowan was looking at retiring in the next four to five years but now may be forced to make that decision earlier.
Fears for town’s economy
Van Bui and her husband took over the Strathmerton bakery six months ago and said workers from the factory were regular customers who had become like a second family.
Van Bui says Bega’s factory closure is sad news for Strathmerton. (ABC Shepparton: Charmaine Manuel)
She said she was worried many would be forced to leave the area to find new jobs.
“If they’re not coming in here anymore then maybe I’ll lose my business and then maybe we’ll need to close as well,”
she said.
Dennis Caughey, 86, has lived in Strathmerton since he was 14 and said it was devastating news.
Dennis Caughey says he hopes another company moves into the factory. (ABC Shepparton: Charmaine Manuel)
“The factory made Strathmerton, because I think nearly every person here was working there at one stage of their life,” he said.
Mr Caughey said the factory had been instrumental in the town, including helping establish the preschool and contributing to football clubs.
He said he was hopeful the factory might be sold and another company would move in.
Union calls for decision to be reversed
United Workers Union national dairy coordinator Neil Smith said factory workers were “absolutely blindsided”.
Neil Smith says workers are shocked. (ABC Shepparton: Charmaine Manuel)
“I got a call yesterday [Tuesday] afternoon to attend the site at a meeting at 5pm and there were 200 odd people in the room with their jaws on the floor,” he said.
“We’re shocked. There are only 1,100 people living in Strathmerton and 340 of those work at the factory.”
Mr Smith said he would like to see the decision reversed but was not hopeful.
“It is going to gut every shop within 100 kilometres of the site … the ongoing effect is enormous,”
he said.
Focusing on the future
Bega Group executive chairman Barry Irvin said the company was committed to the Australian dairy and food industry and ensuring it could remain competitive.
Barry Irvin says companies need to make tough decisions to survive. (ABC News: Adrienne Francis)
“Our objective is to grow but sometimes you have to make some difficult decisions,” he said.
Bega Group said it would save $30 million a year by closing its Strathmerton site.
It said it would spend $50 million on upgrading its Ridge Street plant in Bega where there will be 100 new jobs.
“We’ll obviously offer redeployment where appropriate. We want to be practical about this,” he said.
Additional reporting by Warwick Long and Joshua Becker.
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