Australian Dairy Farmers (ADF) has said the news that dairy business Lactalis plans to close its Longwarry factory in Gippsland, Victoria by the first quarter of 2027 reflects the mounting pressures facing Australia’s dairy industry. During the ACCC’s assessment of Lactalis’s acquisition of Fonterra, ADF raised concerns about increasing consolidation across the dairy industry and the importance of maintaining strong competition and regional processing facilities. ADF President Ben Bennett said the announcement of the dairy factory closure plans reinforces why competition and processing capacity matter. “Rising energy prices, increasing regulation, growing compliance obligations, escalating input costs and trade settings that expose Australian producers to heavily subsidised imports are steadily eroding Australia’s dairy industry.” We need policies that strengthen the competitiveness of Australia’s dairy industry before more communities feel the impact.