Masters Dairy's decision to close part of Albany factory disappointing

21/1/98

Primary Industry Minister Monty House said today he was extremely disappointed at the decision by Masters Dairy to close the processing section of its Albany factory.

Mr House said the move would result in Great Southern dairy farmers being forced to pay a minimum of an extra $60,000 per year to have their milk transported to Perth for processing.

Nine jobs would also be lost as a result of the decision to cease processing from the end of February.

Previously, about six million of the estimated 23 million litres produced by Albany's 25 dairy farmers was processed into fresh and flavoured milk at the Albany factory for the Great Southern market.

"The Great Southern dairy industry will be extremely disappointed by this announcement," Mr House said.

"Dairy farmers will feel betrayed by National Dairies Limited, as it has not fulfilled the commitment it made when it purchased Masters in 1994, that the Albany factory would play a key role in the company's efforts to expand exports."

Mr House said when National Dairies Limited purchased Masters from Wesfarmers in 1994, senior management requested a meeting with him at which they gave assurances they would expand the Albany plant and work to develop export markets.

"The dairy industry in the Great Southern is an important and valuable agricultural industry that has a promising future," he said.

"This decision will act as a major setback for the local industry."

Media contact: Nicole Trigwell (08) 9481 2055