Fonterra, the New Zealand based dairy giant, has announced it is to close its processing plant in Dennington, Australia due to overcapacity and constrained milk supply.
The closure of the factory, which is located in the south west of the state of Victoria and currently produces “lower value” products, comes amid “significant changes, including a declining milk pool” in the Australian dairy industry, Fonterra said.
Commenting on the news, Fonterra Australia managing director Rene Dendoncker said: “While this is terribly difficult news to share, it is a responsible decision that consolidates our manufacturing in Western Victoria, making our three regional Victorian milk processing sites more efficient. Following the closure of Dennington, milk currently processed at Dennington will be relocated to our Cobden manufacturing plant”.
“Coupled with our two Tasmanian factories and secondary processing plant at Bayswater, this gives us the right asset footprint to ensure both our farmers’ milk and manufacturing facilities are efficient with milk going into higher returning products”, he added.