JOBS at Poowong’s United Dairy Power factory will be lost after Burra Foods announced last week that it has entered into an agreement to purchase the Gippsland assets of UDP and Five Star Foods.
A spokesperson from PPB Advisory, the UDP receivers, staff on Friday that staff at the factory will be made redundant, but the exact number was still to be confirmed.
“It will be worked out in the next week or two. No official decision on redundancies has been made yet.”
At least some had their final day at work yesterday. wUDP had 50 employees in Gippsland.
UDP suppliers have a much more secure future, though, with Burra Foods to underwrite the payment terms to current dairy farmer suppliers.
UDP’s milk depot in Poowong is a key part of Burra Foods’ acquisition and is an important piece of infrastructure to support the intake of the milk collected from across Gippsland.
Burra Foods CEO, Grant Crothers, said that the acquisition was an important growth step in the company’s 25 year history and would enhance Burra Food’s long-term future and its ability to meet the continued demand for high quality dairy ingredients from its primarily Asian customer base.
“We have built the business through organic growth so acquisition is new for us but the Poowong depot is a natural fit and we hold farmers who supply UDP in high regard.
“The acquisition will strengthen our market position by providing greater assurance for a secure and stable milk supply and that will allow us to confidently grow and access new markets,” he said.
“For suppliers of UDP, it will provide an assured future and premium for their milk, which we believe will be welcomed after a sustained period of uncertainty.”
Mr Crothers said that the strategic acquisition allows Burra Foods to grow in a planned and sustained manner and strengthens its current operation and milk supply partnerships.
“We are known for our close working partnerships and supporting our milk partners and this will remain a priority for us as we incorporate the UPD assets into our current operations.”