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'It’s just out of the blue': Country towns gutted by Murray Goulburn factory closures

Country communities are reeling at the "devastating" news that dairy processor Murray Goulburn will close three factories across Australia, including two in Victoria, with the loss of 360 jobs.

The Victorian job losses total about240, with about 135 to go when the processor's Kiewa plant, near Wodonga, is closed, and about 105 to disappear with the closure of a factory at Rochester, in northern Victoria.

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Murray Goulburn to close three factories

Dairy processor Murray Goulburn will close three factories across Australia, including two in Victoria, causing the loss of 360 jobs.

Murray Goulburn will close a third factory, at Edith Creek in Tasmania, with the loss of 120 jobs.

In a statement to the stock exchange Murray Goulburn, under immense pressure since it unexpectedly slashed payments to farmers last year, said the closures "will ensure that MG has an improved processing footprint going forward".

Once completed the closures are expected to deliver Australia's biggest dairy processor an expected "net financial benefit of $40 million to $50 million," it said.

Ari Mervis, CEO of Murray Goulburn, said the decision to close the factories was incredibly difficult and the company was "acutely aware of the impact that these decisions have, not only on our affected employees, but also on the communities in which they operate".

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But residents, workers and community leaders in the affected Victorian districts said they were devastated by news that the long running factories, a crucial source of jobs and local economic activity, would close.

Andrew "Snags" Cameron has worked for Murray Goulburn for about 30 years, in two stints, at the Kiewa factory.

Mr Cameron's father worked at the factory "for probably 45 years", and his own son Allan, 25, has worked there for about seven years. His brother-in-law also works there, as did his brother and sister.

He said workers were "devastated" by the closure. "It's just out of the blue mate; we didn't know it was coming," he said.

"It makes me angry and all the other employees angry. I'm unsettled, but I'm more worried about my son, he's just bought a house here. How's he going to afford it?"

"I love the place; it's really hurt. I've got to digest all this - and it's pretty hard," said Mr Cameron.

"When your big employer goes, then what's going to happen with our school? What's going to happen with our shops and pubs?"

Neil Smith, a National Union of Workers organiser, said "nothing even came close" to Murray Goulburn as the major employer in the adjoining towns of Kiewa and Tangambalanga.

"I am seriously gutted. I was born in this area and this regional community means a lot to me, I fight for it all the time. I woke up this morning to a phone call I was not expecting, I am devastated by it. And we will not give up without a fight," he said.

Local mayor of Indigo Shire Jenny O'Connor said the closure would have a "huge impact" on the Kiewa Tangambalanga community.

"These manufacturing industries are stand-alone and they're it. It's a huge impact and the big concern is - what happens to these people after their jobs go," she said.

Campaspe Shire councillor Leigh Wilson said the Rochester factory was located in the middle of town and was a huge part of the local community.

"I'm absolutely gut-wrenched," he said.

"When you lose this sort of manufacturing employer, for every one of those jobs lost there, it's about the equivalent of losing two regular, Monday-to-Friday nine-to-five jobs," he said.