Two hundred jobs will be made redundant in Victoria, and another 100 moved to New South Wales, as part of dairy producer Bega’s plan to wind down operations at one of its Victorian facilities.
On Tuesday, Bega Group announced that its cheese processing and packaging operation in Strathmerton, northern Victoria, will cease to exist by mid-2026.
The operation will be folded into an existing facility in Bega, New South Wales.
Bega’s chief executive Peter Findlay said the closure was aimed at simplifying Bega’s footprint and having “globally competitive infrastructure”.
“Where possible, we will offer redeployment to employees and continue to support them through this period”.
In a statement to the Australian Securities Exchange (ASX), Bega Group elaborated that the consolidation was “expected to deliver $30 million per annum of cost savings by eliminating duplication”.
As part of the change, Bega will invest $50 million in its site in Bega “to create approximately 100 jobs in the Bega Valley”.
Strathmerton, population 1072, has 49 locals employed at the Bega facility as of the most recent census, or about 10 per cent of the working-age population. A further 5 per cent work in dairy farming.
“So sad. Another small regional town industry shattered,” wrote Phillippa Addicott on Facebook.
Once completed, the phased closure will leave Bega with five facilities in Victoria – in Tatura, Morwell, Chelsea, Koroit and Port Melbourne.
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