King Island Dairy to close down after 120 years

A beloved cheese producer has been forced to close after 120 years, with 58 staff now left in limbo.

Tasmania’s King Island Dairy will close up shop mid next year, Canadian owner Saputo announced on Thursday.

The future of the business had been under a cloud for 10 months after Saputo launched a strategic review of the facility.

King Island Dairy operations began in the early 1900s and is one of the biggest employers in the island which holds about 1,600 people.

Saputo chief operating officer Leanne Cutts said the decision to wind up the business was difficult.

She said ‘every possible option’ had been reviewed but closure was the most viable way to strengthen Saputo’s competitiveness in a changing market.

‘As King Island Dairy’s historic roots are deeply embedded in the region, it was hoped the strategic review would identify a potential buyer for the facility,’ Ms Cutts said.

‘It is a unique brand, with a plant that is nearly 100 years old.

‘Our other Tasmanian brands such as Mersey Valley and Tasmanian Heritage are thriving.

‘(While) King Island Dairy products hold a nostalgic place in the hearts of Australians, the brand has not maintained its position in today’s ultra-competitive food industry.’

Saputo, which bought King Island Dairy in 2019, says 58 employees will be impacted but ‘redeployment opportunities’ would be identified where possible.

Ms Cutts said Saputo would work with dairy farmers and the island’s broader community.

Tasmanian Premier Jeremy Rockliff said Saputo’s decision was very disappointing.

King Island Dairy operations began in the early 1900s and is one of the biggest employers in the island which holds about 1,600 people

‘We are providing immediate support to the company’s workers, farmers and the wider island community,’ he said.

Mr Rockliff said the state government was prepared to work with the company in a further effort to find a new operator.

Saputo describes itself as one of the top 10 dairy processors in the world.

King Island has a unique climate based on its location and provides lush grazing for cows and unusually sweet milk.

Saputo, which bought King Island Dairy in 2019, says 58 employees will be impacted but ‘redeployment opportunities’ would be identified where possible