Gippsland dairy processor Burra Foods has been forced to stand down staff who have refused to get vaccinated, as the wider dairy industry grapples with mandating the COVID vaccine for authorised workers.
About 3 per cent of the 150-strong workforce have been stood down on leave without pay, according to chief executive Stewart Carson.
Mr Carson told the Victorian Country Hour it had been a "tumultuous couple of weeks".
"We initially had about 20pc of our workforce against vaccinations but once we made our position clear, that they had to have it... or they would be on leave without pay, we are probably down now to 2-3pc of our organisation that aren't vaccinated, and won't be vaccinated," he said.
"We have committed to our staff that we will review that in two weeks' time... that may be more leave without pay, granting of annual leave, or we will consider termination if we need to as we need to protect the business as well."
The mandate has come under heavy criticism from the Victorian Farmers Federation, who said it was a burden on farmers who were already dealing with severe labour shortages.
Mr Carson said there continued to be an industry-wide push to delay the mandate, which came into effect on Friday.
"I do suspect there will be some dairy processors that have greater problems (with staff vaccinations) than Burra Foods," he said.
"Based on conversations we have been having as an industry, it is definitely the case.
"Most dairy farmers will have employees or workers come on to help with milking, fencing, and contractors, this time of the year, so for smaller family businesses to manage and administer [the mandate], it has been a real issue, for sure."
Want to read more stories like this?
Sign up below to receive our e-newsletter delivered fresh to your email in-box twice a week.