Jobs at stake as Lactalis, producers of Parmalat products, announces shutdown of Zambian plant

Lactalis Zambia, the producers of Parmalat products, has announced plans to shut its Zambian manufacturing operations, opting to import products from South Africa which might result in job losses.

In a memo seen by Zambia Monitor on Tuesday, Alban Damour, Head of Southern Africa operations, said the French conglomerate had to take the difficult decision to close the manufacturing site in Lactalis Zambia and strengthen its commercial operations through a new business model effective April 1,2025.

“Through this new commercial model, Lactalis products will be imported from South Africa and other subsidiaries to ensure that consumers continue to enjoy their quality and nutritious products through the Zambian retail and wholesale channels,” Damour said.

He told employees that the decision was not taken lightly but took into consideration various factors including the current state of the economy in the country which was affected by a severe drought.

In addition, Damour said the business had to consider the significant and persisting absorption of financial resources over the last eight years.

“While this decision aligns with our broader commitment to strengthening the overall sustainability of our business in the Southern African Region, it will unfortunately affect most of our colleagues in Lactalis Zambia as well as our milk suppliers and we are committed to providing them with our support during this transition,” he said.

Damour added that despite changes to operations in Zambia, Lactalis was not leaving the country.

“We have been in Zambia for almost 30 years, and we will continue to maintain our presence in the country,” he said, insisting that the new commercial model bears testament to the company’s commitment to consumers, customers and business partners.

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