Lactalis Australia to shut down its Longwarry manufacturing site in 2027

AUSTRALIA – Lactalis Australia, the nation’s largest dairy processor, has announced the upcoming closure of its manufacturing facility in Longwarry, located in Victoria’s West Gippsland region.

Following a comprehensive strategic review of its national manufacturing footprint, the French-owned multinational confirmed that production at the Longwarry plant will be phased out starting in late 2026, with a complete site shutdown scheduled for the first quarter of 2027.

Lactalis’ acquisition of Fonterra left the company with a regional surplus of manufacturing capacity and a deficit in raw milk volumes to run all Victorian sites efficiently.

Longwarry, which specializes in milk powders and specialty dairy ingredients, has been operating at roughly 40% capacity, making its long-term operational costs unsustainable alongside larger, neighboring assets.

Under the restructuring plan, processing volumes from Longwarry will be transferred to Lactalis’s nearby Darnum facility—located just 20 minutes away—as well as other processing plants across Victoria.

Originally acquired during the Fonterra transaction, the Darnum facility currently operates at approximately 70% capacity and features higher-capacity, modern infrastructure capable of absorbing Longwarry’s ingredient streams with minimal added overhead.

The closure impacts approximately 49 factory employees and contractors at the Longwarry site.

United Workers Union representatives reported that workers were caught off guard by the total shutdown announcement, though Lactalis has initiated formal consultation processes regarding redeployment opportunities to Darnum and redundancy packages.

Importantly for local primary producers, Chief Executive Mal Carseldine confirmed that the plant closure will not alter existing farmgate milk supply contracts, with raw milk collections continuing uninterrupted across Gippsland.

Ultimately, the Longwarry shutdown reflects broader industrial consolidation sweeping the Australian dairy sector as processors adjust to constrained milk pools, high energy costs, and surplus drying capacity.

By consolidating operations into higher-throughput hubs like Darnum, Lactalis aims to optimize asset utilization and improve margins across its Victorian processing network while maintaining its position as Australia’s dominant dairy buyer.

Lactalis to shut down its Brisbane milk plant in Australia

At the beginning of the year, the company stated that it would close its historic South Brisbane milk-processing plant in July 2026, consolidating production into fewer, more modern facilities as it reshapes its Australian manufacturing network following a string of acquisitions.

The closure of Queensland’s largest and oldest milk factory will affect 202 employees, but the company said milk supply from local farmers would continue uninterrupted, with volumes redirected to its Nambour facility on the Sunshine Coast, which is set to undergo upgrades.

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