Citing eight years of drought as the reason behind its decision, Murray Goulburn today announced the closure of its Victorian cheese-making operations at Leitchville.
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"While MG continues to have confidence in the future of the northern Victorian and southern Riverina dairy industries with the region still providing about 20 per cent of national milk production, the decline in milk volumes since 2002 has led us to the very tough decision to cease operations at Leitchville," managing director Stephen O'Rourke said.
"Milk production across the northern Victorian and southern Riverina region has fallen from 3 billion litres in 2001-02 to a forecast 1.75bL for 2009-10.
"Consequently MG can no longer viably continue operation across four northern Victorian milk processing sites and the Leitchville closure was unavoidable."
About 80 workers will be affected by the closure.
MG says it is providing redeployment opportunities at other sites, retraining and outplacement services with the support of the Victorian Government.
Other Leitchville-based services - milk transport and field services will continue as normal.
Milk from supplier-shareholders in the region will continue to be collected as usual with MG's operations continuing at Cobram, Rochester and Kiewa in northern Victoria. MG's other sites in Leongatha, Maffra, Koroit, Edith Creek, Laverton and Footscray will also continue operations as normal.
