After 63 years of operation in the ACT, Canberra Milk will shut the last of its local processing plants and shift production to Penrith, in Sydney's far western suburbs.
The closure will affect the jobs of 19 employees, who will be offered redundancy, redeployment or assistance with "job transition", according to the Bega Group which owns the brand.
"Given there are no dairy farms in Canberra, milk was traditionally sourced from outside the ACT and transported to Griffith for production, often bypassing more efficient and sustainable production sites like Bega's Penrith facility," the company said in a statement issued on Thursday.
The Bega Group said there would be "no change to the brand or the milk inside the bottles across Canberra Milk or Dairy Farmers brands".
The closure comes two months after the death of Garry Sykes, the fiercely Canberra-loyal boss of the company who for decades lived next to the Kingston factory on Wentworth Avenue and linked the company to the Canberra Raiders with the company's famous lime green milk.
The origins of Dairy Farmers and Canberra Milk can be traced back to 1960 when the Bega Co-operative Society built a plant at 8 Mildura Street, Fyshwick, for processing and packaging raw milk from Bega Valley Farms.
Such was the demand for milk in Canberra and the region at the time, it was one of two plants in the territory, the other owned by the Dairy Farmers Co-operative Milk Company with its factory also in Mildura St, Fyshwick.
In 1971, an enquiry by the Milk Authority of the ACT recommended the industry be rationalised and that Dairy Farmers be the sole processor and Bega the sole wholesale distributor to commercial outlets.
In 1997, a joint venture was set up between the two companies known as Capitol Chilled Foods. That company was subsequently bought out by giant beverage multinational Lion Ltd in 1985, giving the ACT operation access to a broader range of products and packaging.
In November 2020, the multi-national market wheels rolled again when Bega Cheese Group reacquired the dairy and drinks business of Lion Ltd for $560 million.
This was thought to have secured jobs in Canberra but according to the company, the Griffith plant had not been operating at capacity for "some time".
"This, combined with the fact that there have not been dairy farms within the ACT for many years, has created challenges for the Canberra site," the company statement said.
"This move will allow us to maintain our high standards across product quality and customer service utilising the benefits of a larger full-time operation specialising in the production of fresh milk.
"Bega Group is committed to continuing its strong local presence in Canberra, retaining both our sales office and distribution centre at our facilities in Griffith as well as renewing all longstanding community and sporting partnerships, which have become part of the fabric of our local operations."
The Griffith factory and separate manager's cottage are also heritage listed, which could make a sale of the property problematic.
"The three dairy buildings demonstrate a collective work designed by a single architect, Ken Oliphant, who was highly regarded and a prominent community figure throughout the middle of the twentieth century," the ACT Heritage Council said.
It is "of a sympathetic style to the original Dairy and demonstrates a continuity of use through advances in milk treatment and handling, increased production demands and the need to source milk supply from the surrounding region of NSW".
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