Former Kraft factory in the Western District sold at auction

Locals are now hoping the disused dairy factory can still be repurposed to provide local jobs.

The factory and its 169 hectare (418 acre) site at Simpson, 24km south-east of Cobden, was sold in the mortgagee sale for around $3 million.

The factory was first commissioned by Kraft in 1966 and was opened by then Premier Henry Bolte.

Dairy companies Lion and National Foods have been among those who have used the factory which has had various tenants over a period of consolidation of dairy factories.

Dairy Farmers Milk Co-operative sold the Simpson site to National Foods in 2008.

As part of Lion's dairy and drinks division, the factory's closure was announced in 2011 but continued with a reduced workforce for some years.

Lion Dairy and Drinks had leased the Simpson factory for many years from Warrnambool Cheese and Butter.

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The Bega Cheese Group bought Lion Dairy and Drinks from Japanese company Kirin in 2020.

At its peak, the Simpson factory employed about 120 workers.

Charles Stewart and Co. auctioneer Anthony McDonald said "all parties" were pleased with the auction result.

He opened the onsite auction on February 17 with a vendor bid of $2.8 million before receiving a bid of $3 million and later passing the property in.

"After a few minutes of intense discussion with the bidder the property was declared sold," he said.

The factory includes more than 5000 square metres of warehouse space with offices, a board room, cafeteria, cool and store rooms.

It also has a maintenance/workshop shed with mezzanine and high roller doors to take in large plant and equipment complete with 3-phase power, mechanic pit and storage room.

The land is laid out to irrigation with six dams and mains water connected.

Agents said the land had an "excellent building site".

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