The 87-year-old retired in the late `90s but still took great comfort in the sight of the Fonterra factory from his front lawn.

On Thursday, he was shocked to read in The Standard the factory would close.

"It's a sad day for Dennington," Mr McDowell said.

"The closure certainly won't do us any good."

Mr McDowell said it was news he did not see coming.

"I was overwhelmed, I didn't think they would do it actually."

Mr McDowell said he was concerned about the impact on the community, with Fonterra contributing funds to a number of events and organisations.

He is also concerned about the future of the town's museum, which pays homage to Nestle.

"What will happen to that?" he asked.

A Fonterra employee, who asked not to be named, said he believed Fonterra's decision to claw back milk payments from farmers was the beginning of the end.

"At the time I had a crack at a director and told him it was a bad decision, but who am I?

"I said 'you can't screw the farmers over, they'll remember this."

The employee said the low milk price was also a factor.

"When you've got no milk, you can't process air," he said.

The employee said he feared if the milk price didn't increase, more farmers would exit the industry.

"The milk price is just not there and they can't sustain it," he said.

"If it keeps going this way they will import milk."

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