Betta Milk’s Burnie factory is expected to close in March or April. Photo: Betta Milk Facebook.
The new owners of the Betta Milk factory in Burnie, on Tasmania’s north coast, have announced the site will close and that 47 jobs will be lost as it consolidates operations at its Launceston and Kings Meadows sites.
Dairy giant Bega bought Betta Milk and Meander Valley Dairy and a licence to use the Pyengana Dairy brand from TasFoods Limited for $11 million in December 2023 after the Australian Competition and Consumer Commission (ACCC) said it would not object to the deal.
But Bega says the ageing Burnie factory was in worse condition than first thought and that it had become aware of environmental concerns since it took over, and the company expected to close it in March or April.
“It’s been a pretty sobering day,” Bega Group executive chairman Barry Irvin said.
“Obviously, we’ll be making sure that [staff] receive all their entitlements, and that we give them as much support as we can, including talking about redeployment opportunities where that makes sense.”
Mr Irvin said 23 employees at Burnie would lose their jobs, while 24 positions at Launceston and Kings Meadows would also go as the company consolidated and moved its operations to Lenah Valley, near Hobart.
Bega Group said the 10 million litres of milk previously processed at Burnie would be transported to Lenah Valley for processing, and that some investments would be made in that facility.
Mr Irvin said the Betta Milk brand would be retained and that no farmers would be affected by the consolidation.
“We want to continue to have the Betta Milk brand well serviced, and that we service it in a manner that makes sure that we continue to support this great popular brand, particularly in northern Tasmania,” he said.
The Australian Workers Union (AWA) dubbed the closure a “disappointing surprise”.
“The Burnie Betta Milk operations have been a part of the fabric of that society for 70 years,” AWA secretary Robert Flanagan said, adding that there had been no notice of the closure.
“We’ve got employees who have been on the site for 30 years, so for those people this is a massive announcement and a significant impact on their lives,” he said.
Mr Flanaghan said he had spoken to local dairy companies such as Saputo and Fonterra about possibly redeploying some of the factory staff, and had so far received positive but non-committal responses.
“Our preference would have been that Bega invest in the operations at Burnie, rather than rationalise them and close them down.”
Tasmanian Premier Jeremy Rockliff said he was disappointed by the news.
“It is a real blow to the workers, their families, and the local community,” he told the ABC. “I know this is a worrying time for all.”
The Department of State Growth has support available for affected workers to find new employment or train for different roles, including grants of up to $3000 through the Rapid Response Skills Initiative to gain new skills or licences.
Tasmania’s dairy industry provides 10 per cent of Australia’s milk and is valued at $490 million to the state.
