Murray Goulburn facility to close

Posted by Janice Wong on 8th February 2010

Australian dairy co-op Murray Goulburn is to close one of its cheese sites in the state of Victoria.

The company told just-food yesterday (3 February) that its facility in Leitchville faced closure after eight years of drought in the region. Some 80 employees will be affected.

“It just wasn’t viable to continue to have four sites in the region, so it will be rationalised down to three,” a Murray Goulburn spokesperson said.

Murray Goulburn is one of two bidders for Australian cheese and dairy ingredients group Warrnambool Cheese and Butter Factory.

The co-op’s offer has been criticised by WCB, which has said the bid does not reflect the current or future value of the business.

WCB has also rejected an offer from a second party, which is from an unnamed bidder.