Australia’s largest dairy processor, Lactalis Australia, has announced it is closing a major dairy factory in Longwarry in Victoria state, according to the abc.net.au website. The multinational said it decided to shut down the site after a “comprehensive review” of its manufacturing network.

The plant produces speciality dairy ingredients and products as well as milk powders. Lactalis acquired the Longwarry factory in 2019, but its purchase of rival processor Fonterra Australia in 2025 left the business with a surplus of manufacturing sites in Victoria and a lack of milk to supply them all, the website reports.

As part of the Fonterra deal, Lactalis took over the Fonterra factory at Darnum, about 20 minutes away from the Longwarry site. Production currently undertaken at Longwarry will be transferred to the Darnum facility and other Lactalis sites across Victoria and Australia. The company said Longwarry operated at about 40% capacity, while Darnum operated at around 70% capacity, ABC News notes.

The final closure will occur in the first half of 2027 and it is not known how many employees will be moved across.