The Kiewa Butter Factory began in 1893, its name echoing the nearby river, whose moniker means sweet water.

Life has indeed been sweet for generations of workers who have been on the production line as the factory has grown and merged into bigger organisations.

In 1959, the Kiewa Butter Factory became the North Eastern Dairy Company after a merger with the Tallangatta Butter Factory and Creamery Company.

It was in 1962, as a 15-year-old, that John Croucher started working at the factory’s laboratory, where his duties included mopping the floors and cleaning Petri dishes.

He saw the Kiewa milk brand start with its red lettering gracing pint bottles before appearing on cartons.

By 1985, Mr Croucher had become company secretary and was among those who decided to accept a takeover by the Murray Goulburn co-operative rather than rival suitor Bonlac.

“We would have to spend a lot of money to bring the plant up to the standard to see it into the future,” he said.

“For a small organisation to spend $8 to $10 million it was rather a large task.”

Yackandandah dairy industry consultant Patten Bridge, who had an executive role at Murray Goulburn for 15 years, said the Kiewa factory became well regarded within the co-op.

“Kiewa had a reputation in the Murray Goulburn group of being a team of people, who would always do their best, not only for the co-operative, but particularly the farmers,” Mr Bridge said.

“In my time at Murray Goulburn if there was a difficult product that needed to be trialled it was where it was often trialled because they were seen as a can-do group.”

But sadly that standing did not stop Murray Goulburn writing a death certificate for the Kiewa factory, when it announced this week it would end its milk processing in August and shut fully in September 2018 when cream cheese production ends.

Rabobank dairy analyst Michael Harvey said a huge drop in milk supply, linked to poor management at the co-op, had forced Murray Goulburn to shut three factories, including Kiewa.

“It’s short term pain for long term gain and it involves job losses and closures of factories, which is never a thing you like to see,” he said.

Mr Harvey said Murray Goulburn was geared to retain its Cobram base because it was a flagship with $91 million having been poured into a new cheese plant.

“Murray Goulburn don’t want to lose more milk, they’re going to want the milk they collect from the Kiewa,” he said.

“It’s quite a reliable area with a high rainfall, but they will have to ship it further to Cobram.”