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Murray Goulburn has blamed reduced milk supply on its decision to cut 60 jobs in its logistics operation in Victoria.

The dairy processor said the 60 tanker operator roles are expected to go in Koroit, Leongatha, Maffra and Rochester, along with a number of support roles, and that it would make roster changes and offer voluntary redundancies in the first instance.

MG said the move was a continuation of its efforts to address its cost base and improve efficiencies with a view to increasing earnings and its farmgate milk price.

“We are committed to ensuring that we provide any affected employees with appropriate levels of support and the recognition that they deserve during this period of transition. MG will support employees by providing access to career transition and redeployment services,” the company said.

“These actions are regrettable but necessary to ensure a strong MG that can deliver sustainable and competitive returns for our suppliers.”

The news comes as the embattled processor assesses a number of takeover bids from local and overseas dairy companies.