MORE than 30 jobs could vanish as part of a production revamp at the Uncle Tobys factory at Wahgunyah.
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Various projects are being undertaken at the plant, which is owned by Swiss multinational Nestle, to increase efficiencies.
Sydney-based Nestle corporate affairs manager Sally Strautins said analysis had been occurring over two months and there was no firm end date for the process.
"Projects will continue to run over the coming months as production trials continue and feasibility is assessed," Ms Strautins said.
"We have advised staff that this may unfortunately result in a reduction in the number of people in the factory by up to 34 employees.
"All potentially impacted staff and unions have been made aware of this.
"We've been very transparent in making sure everyone feels informed."
The ongoing drought and related costs of oats has put pressure on Uncle Toby's, which manufactures cereals such as Vita Brits and snacks, including muesli bars, at the factory.
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National Union of Workers organiser Neil Smith confirmed there was a review of operations occurring.
"There are a number of projects happening across the factory and there will be a reduction in the permanent head count," Mr Smith said.
Around 520 work at the plant with 400 of those union members and 330 full-time.
More than 1100 were once employed at the site which was built in 1979 and sold by Goodman Fielder to Nestle in 2006 as part of a $890 million purchase of Uncle Tobys brands.
Ms Strautins said expressions of interest in voluntary redundancies had been sought from employees and they had exceeded the likely number of job cuts.
"All affected staff will be offered a generous redundancy package and access to outplacement services," she said.
"For any staff that may move to a new role within the business, we will ensure that current pay and conditions are maintained so that no one will be worse off."
Mr Smith noted the move followed Nestle announcing in August the closure of its milk products plant in the Goulburn Valley.
"These full time secure jobs are so important and we want Nestle to invest in manufacturing in Australia and not pull out like they did at Tongala," he said.
Meanwhile, SunRice announced on Tuesday that 32 jobs would be shed across its Deniliquin and Leeton operations.
Dry conditions saw this crop year emerge as the second lowest on record, with just 54,000 tonnes of rice.
The grim outlook of continued drought, low water allocations and high temporary water pricing has prompted the cuts.
The jobs cover milling, packing, maintenance, paddy and warehousing areas.
"SunRice is committed to our Riverina operations, as we have been for nearly 70 years, however we remain concerned at the ongoing impact of low general security water availability and high temporary water prices on annual irrigated industries moving forward," SunRice boss Rob Gordon said.