Bega to shutter Victorian factory, invest $50m in NSW operations

Dairy maker Bega Group will close its Strathmerton cheese factory in Victoria by mid-2026, cutting 300 jobs, as it transfers operations to its existing NSW facilities in Bega.

The decision is expected to save Bega about $30 million a year, as it eliminates duplication and will reduced fixed costs once complete.

Additionally, it will invest $50 million at its facilities in Ridge Street, Bega, to have the capacity for these new combined operations.

Bega said there is also a non-cash impairment of between $30 and $40 million expected from the Strathmerton asset shutdown, as well as a one-off $30 to $40 million cash cost relating to staff redundancy pay outs.

Despite closing Strathmerton, Bega Group said there will be no change to its remaining five Victorian manufacturing facilities in Tatura, Morwell, Chelsea, Koroit and Port Melbourne.

Bega Group Chief Executive Officer, Pete Findlay, said the decision was part of the company’s move to simplify its operational footprint and maintain globally competitive infrastructure.

“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. Where possible, we will offer re-deployment to employees and continue to support them through this period,” Findlay, said.

The shift is a boon for its NSW operations, which are expected to add 100 new jobs.

“Investing in the Ridge Street site [in NSW] enables Bega Group to enhance capability and modernise its cheese processing and packing operations. It is expected to create approximately 100 jobs in the Bega Valley,” he said.

Picture: credit Mex Maintenance Management.