Australian food manufacturer Goodman Fielder has insisted it is “committed” to the bakery sector after closing three plants as part of a restructuring of the division.
Goodman Fielder’s profits have come under pressure in recent months and it is undergoing a major review of its operations to make it more competitive.
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On Monday (25 June) the company said it would shut three bakery facilities in a bid to create a “more sustainable business” in the sector. High input costs, discounting and competition from own label has hit Goodman Fielder’s bakery busines.
When asked if quitting the bakery industry was on Goodman Fielder’s agenda, a spokesperson said: “We remain committed to our baking business which is why we are undertaking the series of initiatives to create a more efficient and profitable baking model.”
The closures will lead to the loss of 115 jobs, bringing the number of staff who have faced the axe to 541 in the group’s current financial year.
The company also announced plans to further streamline the number of bakery products it sells.
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By GlobalDataIn its supply chain, Goodman Fielder has switched from a vendor to a contractor distribution model in Tasmania. The company said further changes could also be made elsewhere in its supply chain for bakery products.
“Trading conditions remain challenging and we need to ensure we can respond by reshaping our business accordingly,” the spokesperson said. “These measures are part of our overall strategy to improve our manufacturing and supply chain efficiency. The baking market has become increasingly competitive and trading conditions are difficult for a number of reasons. That includes price but it also includes other factors such as rising cost pressures.”
