Six months since acquiring Betta Milk and Meander Valley Dairy from TasFoods, Bega Group is relocating the brands’ manufacturing to its existing Lenah Valley site in Hobart. The consolidation means Betta's Burnie factory will close with 21 job losses.
Bega acquired Betta Milk and Meander Valley Dairy from TasFoods for $11 million. The deal included the brands, Betta Milk plant and equipment, and a perpetual, royalty free licence to use the Pyengana Dairy brand in Australia.
TasFoods retained the land and buildings at Betta Milk’s Burnie site, leasing the site to Bega. The closure of the Burnie site follows the conclusion of Bega’s strategic review of its Tasmanian operations.
Bega said that the Burnie site that manufactures the Betta Milk and the Pyengana milk brands is an ageing facility that had a number of challenges including its safety and environmental impacts. This, combined with the site not operating in a commercially sustainable way, decided a transition to Bega Group’s Lenah Valley site. Manufacturing at Kings Meadows will continue given the site’s unique capabilities.
Bega Group CEO Pete Findlay said, “Betta Milk has been a household name in Tasmania for over 65 years, and this move is critical to ensuring that the Betta Milk and the Pyengana milk brands will continue to be much-loved Tasmanian made brands for many years to come.”
Bega said it was working closely with the employees who have been affected by this announcement, offering redundancy packages and exploring redeployment opportunities. Of the employees are impacted; 23 are located in Burnie, 14 in Launceston, 13 in Kings Meadows, 10 in Hobart and 2 in Melbourne.
“The decision was not an easy one to make, and we are working hard to manage this change respectfully with all employees, suppliers, customers, and partners,” said Findlay.
He added that Betta Milk and the Pyengana milk brands, along with Meander Valley Dairy will continue to be made from Tasmanian milk.
“Bega Group is committed to continuing its strong local presence in Tasmania, through its Lenah Valley and Kings Meadows operations, sourcing milk from Tasmanian dairy farming families,” said Findlay.
The Australian Workers’ Union (AWU) representative Robert Flanagan said it was a ‘big blow’ for dairy processing in North Western Tasmania, as Betta Milk operations had a footprint in Burnie for 70 years.
“The union’s strong preference would have been for Bega to update their infrastructure rather than rationalising the factory out of existence in the way that it has.
“The workforce at Betta Milk has a very discrete skill set, and the union has held discussions today following the announcement with Saputo, who have a factory in Burnie, and Fonterra who have a factory in nearby Wynyard, to explore employment opportunities at their operations,” said Flanagan.
Bega said all changes will take effect from 18 March, with customer service and logistics operations to be integrated into Bega’s existing supply chain.
