Dairy giant Lactalis to close Longwarry factory by 2027

Dairy giant Lactalis to close Longwarry factory in Gippsland by 2027 Wed 22 Jul 2026 at 3:02pm In short: Dairy company Lactalis has announced the closure of its factory site at Longwarry, in Gippsland, Victoria. The company plans to transfer production to its nearby Darnum plant and other sites across Australia. What's next? The closure will be complete by early 2027. Australia's largest dairy processor has announced it is closing a major dairy factory in the small town of Longwarry in Victoria's east. Lactalis Australia said it decided to shut down the West Gippsland site by early 2027 following a "comprehensive review" of its manufacturing network. The factory in the town of about 4,000 people is well known for producing specialty dairy ingredients and products as well as milk powders. Lactalis acquired the Longwarry factory in 2019, but its purchase of rival processor Fonterra Australia in 2025 left the business with a surplus of manufacturing sites in Victoria and a lack of milk to supply them all. "We do not underestimate what this closure means for our Longwarry team and their families," Lactalis Australia chief executive Mal Carseldine said. "Our employees have contributed meaningfully to our company and the region, and they have our commitment to support them through this transition. "Our priority is to ensure a respectful and transparent consultation process." Lactalis said the decision to close the plant reflects what it calls "operational realities". As part of its purchase, Lactalis took over the Fonterra factory at Darnum, about 20 minutes away from the Longwarry site. Production currently undertaken at Longwarry will be transferred to the Darnum facility and other Lactalis sites across Victoria and Australia. The company said Longwarry operated at about 40 per cent capacity, while Darnum operated at about 70 per cent capacity. The Darnum plant also has more modern infrastructure, ongoing investment and significant growth potential. Phased closure United Workers Union national dairy coordinator Neil Smith said there were about 49 workers at the Longwarry site. He believes "everybody will be gone" once the site shuts. Mr Smith said workers have been advised there will be a phased closure, with part of the site shutting in August, a further shutdown in November and the whole site will be closed in the first quarter of next year. Mr Smith said despite Lactalis saying the newly acquired Darnum factory will take on production currently done at Longwarry, he did not believe many jobs would be transferred there. "They're meeting one-on-one with all the staff, and there's some, there are obviously some options and availability at Darnum," he said. He said the staff were in shock. "The staff were thinking that part of the site might close, but they certainly weren't thinking that the whole site would shut," he said. "This is what happens when multinationals are allowed to acquire other big businesses; they just consolidate, and that's exactly what's happening here." The company has assured dairy farmers that the Longwarry plant closure would not affect milk supply contracts. "Lactalis remains deeply committed to Victoria," Mr Carseldine said. "Alongside Lactalis–Mainland Dairy, we employ more than 2,000 people and continue to invest in manufacturing capability and regional communities." The company said it will phase out manufacturing at the site with a final closure in the first half of 2027. [Image text:] LONGWARRY FFood Park F