WELLINGTON Shire Council has denounced Saputo’s plan to close its Maffra factory early next year as a betrayal of the local community.

Council said Maffra had been failed by the Saputo closure, which will lead to job losses.

“Council was not forewarned of the closure, and while the announcement is perhaps not a surprise to many observers, it is nonetheless a significant blow to Maffra and surrounding communities,” Council said in a statement.

“Council has today contacted Saputo and will work closely with the company and community members to determine support for affected employees and opportunities for future use of the Saputo site. While Maffra is a resilient and growing community, this decision to close brings to an end an important economic and community piece of Maffra’s history that stretches back decades.”

Wellington Shire Council mayor Ian Bye condemned the timing of the announcement and lack of discussion with council.

“Today’s announcement is disappointing in that there has been no discussion with the community or council to leverage other opportunities or consider responsible transition for local employees,” Cr Bye said.

“If you ask anyone in Maffra, they’ll tell you how important Saputo was for the region. It has been an integral part of the community for decades, and it’s now time for us to look at transition options for the future.

“As a council we are confident that with a number of different sectors looking for workers, we can start a conversation with Saputo and work towards a solution to benefit everyone involved.”

As well as permanently closing the Maffra factory early next year, the company’s bulk powders production section of its factory at Leongatha will be cut back, and a cheese-packaging area at Mil-Lel in South Australia closed.

Shortly after Saputo Dairy Australia’s announcement, Federal Member for Gippsland, Darren Chester, said on Facebook that the closure was devastating news for dozens of Maffra and district families in the lead up to Christmas.

“The Maffra community is extremely resilient and I know it will overcome these challenges but that doesn’t soften the news for staff and families directly impacted by this decision,” he said.

“I will be working with the community, Wellington Shire Council and other levels of government to secure more investment in infrastructure and services to boost the local economy.

“In many ways, this will be the end of an era: Maffra has had more than 100 years with a dairy factory… adding value to the milk produced throughout the region and creating local jobs.”

Saputo Dairy Australia (SDA) said in a media statement on Wednesday morning that after “careful consideration of all affected stakeholders”, the Canadian company was “undertaking further consolidation initiatives intended to enhance its operational efficiency and strengthen its competitiveness”.

“As part of the Optimize and Enhance Operations pillar of Saputo Inc.’s Global Strategic Plan, these initiatives include the intention to permanently close its Maffra, Victoria, facility,” the statement read.

“Additionally, while the sites will remain operational, the company will streamline activities at two further facilities with the intention to shut down its bulk powders production area located in Leongatha, Victoria, and close its cheese packaging area at Mil-Lel, South Australia.

“Many of the impacted production and packaging functions at these three facilities will be absorbed or integrated into the company’s other facilities, increasing capacity utilisation and reducing costs.

“Approximately 75 employees will be impacted. Site management will work closely with affected employees at the three impacted sites to discuss redeployment and retraining opportunities. Where alternative roles are not available, these employees will be provided with severance and outplacement support.”

President and Chief Operating Officer (International and Europe) of Saputo Inc, Leanne Cutts, said the changes were aimed at improving efficiency and competitiveness.

“While a very difficult decision to make, today’s announcement continues our journey towards long-term success for our business in Australia by increasing our efficiency and productivity, and making our business more competitive,” Ms Cutts said.

“These strategic steps, taken to further streamline our network, aim to leverage SDA’s broader manufacturing network capabilities while creating synergies to maximise the return on every litre of milk.”

SDA said it will work closely with its customers to ensure these changes have minimal impact, and intends for its consumers to continue enjoying its range of dairy products.

SDA also expects no changes to its farmer relationships, with suppliers’ milk continuing to be collected and processed across SDA’s network. These changes will take effect in the first three months of 2023.