Future of Strathmerton ‘very bright’ in face of Bega shutdown

The announcement came as a surprise to many, including Strathmerton Football Netball Club president Michael Keane, who said it was a realistic prospect the club would lose both senior and junior players because of the decision.

“I think that to think you’re not going to lose someone or some families out of your club is pretty unrealistic,” Mr Keane said.

“It’s definitely going to have a flow-on effect. But I don’t think it will just be our footy club. I think there will be a few local clubs that are in the same boat.”

The Bega Group projects it will save $30 million per year by consolidating its cheese processing and packaging operations at Strathmerton to its site in the Bega Valley, NSW.

“We have a few senior players who work down at the factory, and some of our juniors have parents who work at the factory,” Mr Keane said.

“So employment for them, what it looks like, whether that means moving away from the area and potentially losing those families from the club, remains to be seen.”

It comes amid talks between Moira Shire Council, the Victorian Government and the Bega Group over the options available to employees.

Victorian Regional Development Minister Jaclyn Symes met with Moira Shire Council chair administrator Graeme Emonson on Friday, May 9.

Speaking to reporters in Waaia earlier that day, Ms Symes said the closure was a massive blow, and the government wanted to understand its impact on the 300 people affected.

“Regional Development Victoria are there already. We will activate support systems, transition, and really work with the company to make sure that, hopefully, everyone can be redeployed or have the choices so they can make the decisions they want to make,” Ms Symes said.

Regional Development Victoria is the government agency responsible for driving economic development in rural and regional communities.

“Regional Development Victoria will be talking to a range of other businesses about capacity to take on workers and the like,” Ms Symes said.

“The good news is this isn’t an instant closure. This is going to be worked through and give people a lot of time to be able to be in the best position to make decisions.”

Ms Symes said the Bega Group had been constructive in talks with the government.

“It is a difficult decision for [the Bega Group] obviously. I understand they’ll be able to redeploy a certain percentage of the workforce, and in terms of others, there’ll be support and opportunities through a range of support services, whether it’s retraining and the availability of similar jobs in the region,” Ms Symes said.

Dr Emonson said council was working actively with the government.

“I’m very confident about Strathmerton’s future. Obviously, this is an event that is going to need to be managed,” he said.

“I’m very confident that it’s managed well, the future of Strathmerton remains very bright.”

Dr Emonson said council staff on Wednesday door-knocked local businesses in Strathmerton to find out about the expected impacts of the closure.

“There’s a very strong commitment from Regional Development Victoria to work with Bega, council and the community to understand how best we can mitigate any of the impacts that are likely to flow from the closure of the Strathmerton plant,” Dr Emonson said.

“We have a commitment to work on an ongoing basis with Regional Development Victoria to understand how we might be able to work with retraining and re-skilling those directly affected staff, and also to understand what opportunities there might be to fast track other expansions of existing businesses in the area.”

The Bega Group took over the Strathmerton site from Kraft in December 2008, creating 150 new jobs and projecting a doubling in production.

It will continue to operate its five factories in Victoria, including in Tatura and Morwell.

Dr Emonson said council would take a keen interest in discussions around other potential uses for the Strathmerton site.

“The existing site is obviously owned by Bega, and we’re not aware that they’re intending to sell the site. But discussions regarding potential other uses of the site certainly will be front and centre in discussions of Regional Development Victoria with Bega,” Dr Emonson said.

“It’s a fantastic facility, it’s 29 hectares, ideally located. The ideal situation would be to see an industry operating out of that site. But the site continues to be owned by Bega, and these are some of the conversations that will need to be actively had over coming months.”