Production from the South Brisbane site will be shifted to Queensland and interstate plants, with the Nambour facility on the Sunshine Coast absorbing some volume after planned infrastructure upgrades.

Lactalis emphasizes ongoing commitment to Australian dairy manufacturing with investment and employment across its network, despite the closure.

Lactalis Australia will close its South Brisbane milk processing facility in July 2026 as part of a broader restructuring of the national dairy network, redirecting production to other facilities in Queensland and across Australia.

The closure will affect about 202 roles at the South Brisbane site, though Lactalis stresses it remains committed to workers’ welfare and a transparent transition.

The company says the move is careful and responsible and will not compromise national food supply, with support for affected employees during consultation and transition.

Local mayor sees the closure as an opportunity to unlock inner-city land for housing, potentially boosting density and public transport connections while easing outer-suburban infrastructure pressure.

Lactalis cites a mismatch between the South Brisbane site’s location and the needs of a modern manufacturing network, while reaffirming commitment to workers’ welfare and a transparent transition.

Historically significant to Australian dairy, the South Brisbane site produced iconic products since 1937, marking its role in local industry.

The decision aligns with broader South Bank revitalization discussions and shifts focus away from earlier plans like South Bank 2.0 toward more inner-city apartments.

Lactalis, the French family-owned company and owner of multiple brands, remains a major global dairy player with extensive production footprint and brands such as Pauls Milk, Oak, and Lemnos.

The closure could accelerate redevelopment of the South Brisbane site as part of widening riverside precinct renewal ahead of Brisbane’s 2032 Olympic Games, including nearby Visy facility redevelopment into a mixed-use area.

The Australian Workers Union expresses disappointment and will work to protect workers’ entitlements and support members and their families during the transition.