Bega Cheese to close Victorian processing site to move jobs to NSW

Bega Cheese will close its northern Victorian site in Strathmerton and consolidate its processing and packaging operations into its premises in the Bega Valley.

The company announced on Tuesday that after an extensive review, a phased closure of the Strathmerton site was expected to be complete by mid-2026.

The decision affects approximately 300 staff at the Strathmerton site.

“We are very aware of the impact of this decision, and we are doing our best to manage this transition with care and respect for our Strathmerton employees and the local community,” Bega Group chief executive Pete Findlay said. 

“Where possible, we will offer redeployment to employees and continue to support them through this period.” 

Bega said it expected $30 million in annual savings through the closure of Strathmerton as it moves to eliminate duplication in its production lines.

The company said the consolidation would create about 100 jobs in the Bega Valley and that investing in its Ridge Street site would allow it to “enhance capability and modernise its cheese processing and packing operations”.

“As the business maintains its focus on delivering productivity improvement and growth, we continue to look at opportunities to simplify our operational footprint and invest for the future, ensuring we maintain globally competitive infrastructure,” Mr Findlay said. 

The company has five other Victorian manufacturing sites in Tatura, Morwell, Chelsea, Koroit and Port Melbourne, which employ more than 1,700 people. 

The Victorian government has been contacted for comment.

Ripple effects expected 

The Chair Administrator at Moira Shire Council, Graeme Emonson, said the loss of 300 jobs would impact not only the local area but the broader region and state.

“There will be very direct impacts … but there will be a ripple effect out into the community as other businesses and suppliers also feel the impacts of the plant closing,” he said. 

Dr Emonson said the council was trying to understand “what the phased shutdown really means in practice”.

“We’ll be working very closely with Bega to understand how we might be able to mitigate, in any way possible, some of these direct impacts,” he said.

“We’ll also obviously be very keen to work with local members of parliament and the Victorian government to understand how we can, in a multifaceted way, look at mitigating any of those impacts that are likely to flow.”

State member for Shepparton Kim O’Keefe said it was disappointing to lose a major employer in the community.

“This has a significant impact on those affected and the community more broadly,” she said.

“I hope that the staff are well supported during this difficult time.

“I expect those employed at our Tatura site will also have concerns with the shock closure of Strathmerton.”