SAPUTO Dairy Australia is set to permanently close its Maffra plant on February, 10, 2023.

The company announced plans to close the milk processing plant on November 9 last year, a not-unexpected but still an unwelcome announcement.

At the same time, it will shut down its bulk powders production area at Leongatha and close its cheese packaging area at Mil-Lel in South Australia.

At the time, Saputo said it was undertaking further consolidation initiatives intended to enhance its operational efficiency and strengthen its competitiveness in the face of dwindling milk supplies.

“While a very difficult decision to make, the announcement continues our journey towards long-term success for our business in Australia by increasing our efficiency and productivity, and making our business more competitive,” said Leanne Cutts, President and Chief Operating Officer (International and Europe), Saputo Inc.

"These strategic steps, taken to further streamline our network, aim to leverage SDA’s broader manufacturing network capabilities while creating synergies to maximise the return on every litre of milk.”

Saputo said that while many of the impacted production and packaging functions at these three facilities would be absorbed or integrated into the company’s other facilities, approximately 75 employees would be impacted.

United Workers Union dairy representative Neil Smith acknowledged on ABC Gippsland Radio this week that about 80 jobs would be lost as part of the restructure.

He said the South Australian site would be used as a transport deport and also claimed the UHT function at Leongatha would be “downsized” but that the Maffra site would be completely closed.

Located at 14 Bundalaguah Road, just off the main street of Maffra, the Saputo factory maintains a large presence in town, now for all the wrong reasons.

The town’s association with milk processing stretches back more than 100 years with the Maffra Co-operative Milk Products Company Ltd formed in 1918 and taken over by Nestle in 1921.