300 more jobs slashed in dairy sector: Murray Goulburn’s profit declines

Australia’s biggest dairy foods processor will slash 300 jobs to lower costs in the increasingly difficult dairy industry.

Murray Goulburn, a co-operative owned and controlled by dairy farmers turns a third of Australia’s milk supply into diary products which are then sold domestically and to export markets.

It recently achieved praise and appreciation as a price leader in the local market, after increasing the price it paid for milk products at the farm gate.

But the pressure on the dairy sector from supermarkets and importers has led to a decrease in Murray Goulburn’s profits.

Murray Goulburn, the maker of Devondale butter and Cobram cheese will cut the 300 jobs to lower costs in the increasingly difficult dairy industry.

It conducted a detailed review of its head office and processing operations before deciding to eliminate 12 per cent of its workforce.


The 300 jobs will come from various parts of the business, with 168 positions from processing sites and distribution centres lost, 59 from the head office and the remainder through natural attrition.

Those in processing and distribution roles will be made redundant by the end of June and the head office roles will become redundant by September.

Managing director Gary Helou blamed the decline in world market prices as a result of higher global milk supply as the main reason for the job losses.

He said the company needs to improve its manufacturing efficiency, slash head office costs, increase its global competitiveness and deliver higher farm-gate prices, and these changes will begin some of these improvements.

"These are difficult but necessary decisions to ensure that Murray Goulburn can remain competitive,'' he said.

“It is in the interests of our suppliers, shareholders, employees, communities and customers that MG remains a strong business into the future.''

The company has promised employees full entitlements.

Image: The Herald Sun

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