Wednesday, February 3, 2010

a sad day for murray goulburn suppliers

Had a total shock today - due to the drought etc Murray Goulburn (the dairy company we supply with milk) has decided to close the Leitchville factory (which is the one closest to us). Ive copied their statement below. We are ok, our milk etc will still be picked up, its just it will go to another factory. BUT heaps of local families and businesses will suffer. My thoughts and prayers are with them.
Murray Goulburn
Co-Operative Co.
Limited
ABN 23 004 277 089
3 February 2010
Media Release
Murray Goulburn announces drought-related site closure
After eight years of drought, Murray Goulburn Co-Operative (MGC) today announced the closure of
its Leitchville cheese-making operations.
“While the Co-operative continues to have confidence in the future of the northern Victorian and
southern Riverina dairy industries with the region still providing about 20 per cent of national milk
production, the decline in milk volumes since 2002 has led us to the very tough decision to cease
operations at Leitchville,” Managing Director Stephen O’Rourke said.
“Milk production across the northern Victorian and southern Riverina region has fallen from 3 billion
litres in 2001/02 to a forecast 1.75 billion litres for 2009/10. Consequently Murray Goulburn can no
longer viably continue operation across four northern Victorian milk processing sites and the
Leitchville closure was unavoidable.
“The decision to implement the site closure came after an analysis of milk supply forecasts and
operational factors at the Leitchville site,” Mr O’Rourke said.
Approximately 80 workers will be affected by the closure and the Co-operative is providing
redeployment opportunities at other MGC sites, retraining and outplacement services with the
support of the Victorian Government.
MGC will continue to employ approximately 2,400 people, most in rural and regional Australia. This
will include relocated employees from Leitchville.
Mr O’Rourke said that the decision was tough as it impacts on MGC people who have worked hard
for the Co-operative and in some cases the previous owner of the facility - Kraft Foods.
“Unfortunately the closure was unavoidable given the relentless dry conditions impacting on milk
supply in the region.”
“All employees unable to be redeployed in the Murray Goulburn business will receive their full
entitlements including severance pay. This is in addition to financial counselling, retraining and
outplacement services which will be provided by the Co-operative in conjunction with the Victorian
Government,” Mr O’Rourke explained.
Other Leitchville-based services – milk transport and field services will continue as normal.

3 comments:

Lindi said...

I'm glad you will be ok, but I feel for those affected, both directly, and those who will be indirectly affected in the business community.

Ozjane said...

It is so darn hard to be a farmer.
Still praying for this drought in Victoria to end in safe steady rains.

Jo said...

glad it doesnt impct you, and that your milk will still be picked up. I feel for the community losing their factory, as it does change the community. The community I grew up in lost the milk factory (MGC) many years ago and it does cause a ripple effect.