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Murray Goulburn will sack 60 workers in response to the reduction in milk supply and its milk collection needs.
The dairy co-operative said in a statement the workers affected will be tanker drivers and others in support roles from Koroit, Leongatha, Maffra and Rochester.
The statement added that to minimise the impacts on employees, it will first seek to make changes to rosters and offer voluntary redundancies.
“These actions are regrettable but necessary to ensure a strong MG that can deliver sustainable and competitive returns for our suppliers,” the statement read.
The announcement comes as rival dairy manufacturers consider offering bids for the beleaguered Murray Goulburn. Today is the cut-off day for bids and it is expected that a short list will be drawn up from those bids.
Bidders include New Zealand dairy giant Fonterra as well as European and Asian dairy companies.