Jun 1, 2017

Murray Goulburn: Dairy crisis hits new low

By Elena Garcia

Friday, May 12, 2017

Australia’s largest milk processor Murray Goulburn has announced it will close manufacturing plants in three small rural towns: Kiewa and Rochester in northern Victoria and Edith Creek in Tasmania.

Murray Goulburn expects 360 people will lose their jobs. The closures are in areas where there are no other industries.

This will have a huge impact on these three local communities. The 700 residents of Kiewa-Tangambalanga will lose 135 jobs from Murray Goulburn's factory closure.

“It’s devastating to the town,” former Murray Goulburn employee Jack Britten said about the Kiewa closure. Kiewa was built around the butter factory. Most will have to move to find jobs, which will mean shops and local services like schools may close.

Murray Goulburn attributed the closures to a 20.6% slump in milk supplies and a 14.8% drop in revenue.