Lactalis to close Zambian manufacturing facility, shift to imports

ZAMBIA – Lactalis Zambia, producers of Parmalat products, has announced plans to close its Zambian manufacturing facility, opting instead to import products from South Africa.

This move is expected to lead to job losses, affecting a significant number of employees in the country.

The announcement was made in a memo, where Alban Damour, Head of Southern Africa operations, explained that the decision was difficult but necessary for the company’s long-term sustainability.

The French conglomerate intends to implement a new business model starting April 1, 2025, which will see Lactalis products imported from South Africa and other subsidiaries.

The goal is to ensure that Zambian consumers continue to have access to high-quality and nutritious products through both retail and wholesale channels.

Damour emphasized that this shift would allow Lactalis to strengthen its commercial operations in the region.

Damour further highlighted that the decision was driven by multiple factors, including the challenging economic situation in Zambia, which has been affected by a prolonged drought.

He also pointed to the financial strain the business had endured over the past eight years, which had required significant investment in the local operations.

Despite the changes, he reassured employees that Lactalis was committed to supporting them during this transition period.

While the closure of the Zambian plant marks a significant shift for the company, Damour clarified that Lactalis would not be leaving Zambia.

The company has been operational in the country for nearly three decades, and it plans to maintain its presence through the new business model.

He emphasized that the move was part of the company’s broader commitment to strengthening its position in the Southern African region.

The shutdown of the plant is set to have a profound impact not only on the workforce but also on local milk suppliers who have long relied on the company.

Lactalis has pledged to offer support to those affected by the decision, but the move raises concerns about the long-term economic implications for the local dairy sector.

According to the company, the closure is another sign of the challenges faced by businesses operating in Southern Africa, where economic pressures and environmental factors.

The shift to importing products is likely to change the dynamics of the Zambian dairy market, and it remains to be seen how the local industry will adapt to these changes.