The Murray River Group of Councils has raised its concern over the impacts of the staggered closure, which is planned for mid-2026 and expected to impact more than 300 workers.
Murray River Group of Councils chair Dan Straub said the shutdown was both devastating for Strathmerton and highlighted the pressures facing dairy manufacturers.
“This is a heartbreaking announcement for 300 workers, their families and the wider community,” Cr Straub said.
“It’s also a clear signal that our food manufacturing industry, on which our region relies, is under increasing strain — from rising input costs to workforce challenges and from uncertainty driven by the Murray-Darling Basin Plan.”
The Murray River Group of Councils highlighted the impacts of the Federal Government’s water recovery program, which it said had undermined confidence in Victoria’s dairy industry.
“While the closure of this facility is the result of multiple complex factors, the uncertainty created by water buybacks is undoubtedly affecting business and investor confidence across the region,” Cr Straub said.
“Agricultural producers and food manufacturers need long-term policy stability to plan and invest, and right now, that confidence is being undermined.”
The Murray River Group of Councils consists of Moira, Campaspe, Loddon, Mildura, Gannawarra and Swan Hill shire councils.
Cr Straub called on the state and federal governments to provide co-ordinated support, clear policy direction and meaningful investment to help restore confidence in the future of the manufacturing industry.
“Our region produces world-class food and fibre, and we have the capacity to support strong, sustainable manufacturing industries,” he said.
“We need all levels of government to act — not only to support the 300 people who will lose their jobs, but also to address the structural issues threatening the future of agriculture and food manufacturing in this region.”
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