THE closure of the Murray Goulburn cheese factory and loss of 80 jobs has sent shockwaves through Leitchville. SIMONE SMITH reports

Leitchville is a town of divided opinion.

On one side are the Murray Goulburn workers who have been forced into the job market as a result of last week's cheese factory closure.

It's never a good feeling to have a question mark over your future, especially if it means having to relocate to secure a job or dip your toes in the job-hunting market - something many workers have not had to do for up to 20 years.

On the other side are the local dairy farmers who supply Murray Goulburn, who know that the closure reflects their shrinking industry but will also bolster their incomes.

They understand milk processing capacity far outweighs supply due to drought, low milk prices and water policy.

For them, moth-balling Leitchville saves the co-operative money and means a better outcome for suppliers.

Last Wednesday's news was disappointing and sad for the community.

When The Weekly Times visited last Friday it was clear Leitchville, a town of less than 300 residents 50km northwest of Echuca, was in shock.

A week ago MG called factory workers into a meeting at 11am. They left with envelopes and the knowledge that everything had changed.

The co-operative told the 80 employees that milk production had dropped by 1.25 billion litres since 2002 due to eight years of drought.

Redeployment opportunities would be made available at other MG sites along with retraining and employment services.

March 6 would be the last day of operation at the Leitchville cheese factory.

National Union of Workers representative Des Shelley will be eight months shy of 40 years service at the factory.

He said "the writing was on the wall" with a 20 week maintenance shut-down last year, well above the usual seven.

Mr Shelley will look for relief milking work in the region.

For electrician Corey Power, moving is out of the question.

"I was born and bred in Cohuna. All my family and all my wife's family are from Cohuna. We've just built a house three years ago and have a baby due in a month," Mr Power said.

"I generally love the area."

Mr Power has worked at the plant since he was 16. Its closure means that for the first time in 17 years he will have to look for work.

"I have had work offered to me, but not around here though," he said.

In recent weeks, the factory was shut down each Wednesday.

"We had been aware that something might happen," Mr Power said.

"But they (MG management) just turned up like that. And in half an hour you know you only have a month left. Yeah, I am pretty shaken."

Until the doors are officially shut next month, Mr Power plans to make the most of the employment workshops and information sessions about preparing for the job market being offered by the company.

The hardest part of last week's news for 26-year-old leading hand Michael Distefano to get his head around was having to move.

"You have got a month to pretty much relocate to somewhere you never intended to live," he said.

Mr Distefano said a trip to Thailand with friends was up in the air.

Some workers told The Weekly Times they had already listed their house for sale.

Others, such as one employee who did not want to be named, were still contemplating the Leitchville real estate market.

"Houses were selling $110,000-$120,000 before Wednesday," she said. "Now I don't know what they're worth ... $60,000 or below."

Leitchville IGA X-Press owner Mike Walker will miss the business from MG employees dropping in before and after work and is concerned that people may move away from town.

Gannawarra Shire councillor Neville Goulding, who is also a Murray Goulburn supplier, said he felt for the staff but understood why the factory had to close.

"(It will) mean more money in our (suppliers) pocket, it is important to support the closure of Leitchville as much as it is a very difficult decision for individual staff and the community," he said.

National Union of Workers organiser for northern Victoria Brad Dobson said he wanted to make sure employees received their entitlements.

MG chairman Grant Davies said he said he would "imagine" MG would pay what was legally required of them in redundancies.

Mr Davies said the MG board only made the decision to shut the plant on Tuesday.

Mr Davies said no more processing closures were in the pipeline.

"At this stage at the rest of the factories it's production as usual," he said.