The 120 employees at Murray Goulburn’s Edith Creek dairy manufacturing facility in Circular Head were told today the plant would close by December this year.
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A Murray Goulburn spokesman said a definite date had not been set for the closure yet.
“Edith Creek and its employees have made a significant contribution to Murray Goulburn,” the spokesman said.
“These have been difficult decisions to make, however they are necessary steps on the journey to ensure the future strength and competitiveness of Murray Goulburn. We are acutely aware of the impact on our valued employees at the Edith Creek site and the local community,” he said.
Employees may be able to move to other Murray Goulburn sites and will be assisted in finding other employment, the spokesman said.
“Murray Goulburn is committed to ensuring that we provide our affected employees with appropriate levels of support and the recognition that they deserve during this period of transition,” the spokesman said.
Milk processed at the Edith Creek plant will be transferred to Murray Goulburn’s Smithton facility.
DairyTas executive officer Mark Smith said the Edith Creek closure could present an opportunity for another dairy processor.
“Someone else may purchase the facility and we may see other processors in Tasmania,” Mr Smith said.
The closure of the Edith Creek plant came as a surprise to DairyTas, but Mr Smith does not expect it to affect demand for milk.
“We were aware of the Murray Goulburn review of assets in Australia, but are surprised they are shutting Edith Creek. We didn’t think that was likely,” Mr Smith said.
“We’re not expecting to see a loss in demand for milk produced by Tasmanian farmers. Murray Goulburn will want to maintain a solid supply base in Tasmania,” he said.
Murray Goulburn’s Victorian facilities at Rochester and Kiewa will also shut as part of the rationalisation.
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