Murray Goulburn is now planning to sell its Edith Creek plant, which was due to close in December, in a move that could save more than 100 jobs in the small dairy town.
A special working group was created after MG's announcement to mothball the plant to help the Circular Head community to adapt to the loss of jobs and contract work and the impact on suppliers.
The state government also committed a $1.5 million support package to help the Circular Head Regional Economic Development Working Group seek new opportunities.
The group is working towards securing the future of the Edith Creek site and had identified ways to expand tourism through cruise ship visits and salmon farming opportunities. The group's chair, Joan Rylah, said these could help offset the loss of MG processing jobs.
Projects worth more than $670,000 had already been identified to support and retrain workers and contractors, create jobs and encourage further economic development, Rylah said.
