The fears are rooted in recent industry precedents, which suggest that large-scale mergers often lead to plant closures. The United Dairyfarmers of Victoria president, Bernie Free, specifically cited the Bega Group’s recent shutdown of its Strathmerton factory, which resulted in 300 job losses, as a tangible example of these risks. Free expressed frustration over the lack of communication from Lactalis, noting that weeks have passed since the deal was announced with little detail provided on their post-takeover intentions. This silence is fueling speculation and distrust among producers.

Unions are also sounding the alarm, with the United Workers Union (UWU) and the New Zealand Dairy Workers Union seeking firm assurances from both Fonterra and Lactalis. The UWU’s national dairy co-ordinator, Neil Smith, stated that the union had opposed the takeover and will continue to fight against any site closures or consolidation. He emphasized that shutting down regional dairy sites has a “devastating impact” on local communities, families, and workers who depend on the industry for their livelihoods and economic stability.

Beyond the immediate employment concerns, farmers and unions fear the long-term effects on the dairy supply chain and market competition. They argue that fewer dairy sites lead to less competition for raw milk, which weakens farmers’ bargaining power and leaves them with fewer options for selling their product. Additionally, the loss of valued brands like Western Star and Perfect Italiano would mean less choice for consumers, devaluing the final product and negatively impacting the entire chain from producer to plate.