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Murray Goulburn has announced over 70 more job losses in its Victorian operations as it seeks to adjust its business to its plunging milk supplies.

The company's Leongatha plant will be the hardest hit, with the loss of 52 workers, followed by Koroit where nine jobs will go, while Cobram will lose seven and Maffra will lose five. Most of the staff are being offered voluntary redundancies.

Muray Goulburn told its suppliers that in the past year and a half it had managed its lower milk intake by reducing contractors, changing rosters and through the use of annual leave and accumulated hours, but more decisive action was now needed to ensure it could deliver sustainable and competitive returns.

Last year, Murray Goulburn surprised its farmer supplier with retrospective milk price cuts, which saw many leave the company to supply processors.

The company's milk supply has fallen from 3.5 billion litres in 2015-16 to a forecast 2 billion litres this season, according to the Weekly Times.

Over the past year, MG has cut 200 roles and announced the closure of its Edith Creek factory in Tasmania, and Rochester and Kiewa factories in Victoria.

 

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