News Milk supply
Saputo Australia cuts capacity due to milk shortage
The Canadian dairy giant Saputo has been forced to close a production location due to a shortage of milk. Production in two other factories is also being adjusted, the company announced this week.
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The shortage of milk in Australia has been bothering Saputo, the largest milk processor in the country, for some time. Earlier this year, a reorganization plan was announced to better balance production capacity with milk production. The problem is at this point, because the milk supply in Australia has fallen sharply.
Shrink milk puddle
In September, dairy farmers in the country produced 800.000 tons of milk, a decrease of about 6% compared to last year. This decline is not an incident, but a trend. The weather seems to be one of the factors. In recent years it has been both extremely dry and wet, something that has bothered many dairy farmers.
Due to the shrinkage, Saputo has decided to close the production site in Maffra in Victoria, Australia's largest dairy state. This has a major impact on the picture, given that barely 4.000 people live here. Production of milk powder and cheese is being scaled down in two other locations in Victoria and South Australia. A total of 75 jobs will be lost in the first quarter of 2023. The closures are not a prelude to Saputo withdrawing from Australia, a spokesperson emphasizes. "We want every liter of milk."