Changing milk supply has driven Lactalis Australia to close its Rockhampton factory. It will also be scaling back yoghurt production at its South Brisbane factory this year.
Rockhampton will close at the end of the month, with 47 people retrenched. The welfare of staff was its top priority, with possible redeployment to other sites, it said.
Lactalis said the factory had not been operating at capacity for a number of years, processing only three or four days a week with milk from South East Queensland.
Yoghurt production at South Brisbane will be scaled back because of insufficient farm milk in Queensland to support yoghurt manufacturing. The factory has been relying on milk from other states to meet demand, it said.
"Yoghurt manufacture will transition to other Lactalis factories in Victoria and Tasmania, which will reduce transportation requirements of milk between the states," the company said.
"The welfare of our employees at the South Brisbane factory is paramount, and the redirection of milk from our Rockhampton farmers to South Brisbane for fresh milk production means we can minimise the effects of ceasing yoghurt manufacturing on permanent employment at South Brisbane."
It will continue to purchase milk from dairy farmers in the Rockhampton region, but will redirect it to its Nambour and Brisbane factories.
Lactalis is the largest buyer of milk from Queensland farms, purchasing more than 150 million litres of milk from 114 Queensland dairy farmers each year. It owns major brands Pauls, Ice Break, Vaalia and Breaka.
