Nestle factory in Victoria's Goulburn Valley to close shedding more than 100 jobs

Global food giant Nestle plans to close its dairy factory in Victoria's Goulburn Valley, shedding more than 100 people from its workforce.

The factory in Tongala, which produces mainly milk products, will progressively halt operations over the next 18 months.

Nestle general manager for Beverages and Dairy in Oceania Andrew McIver said the decision for the closure was partly due to consumers buying less tinned milk than they used to, adding that cheaper imports had eroded the business.

"At the same time, the equipment in this factory is old and the investment we need to make sure it can operate reliably in the future means that the factory is no longer viable," Mr McIver said.

The manufacture of products currently being made at Tongala will be moved to Nestle factories overseas during the next 12 to 18 months, Mr McIver said.