King Island Dairy to close down after 120 years

A beloved cheese factory has been forced to close its doors after 120 years, leaving 58 employees in a vacuum.

King Island Dairy in Tasmania will close mid-next year, owner Saputo announced on Thursday.

The company’s future was uncertain for ten months after Saputo launched a strategic review of the facility.

King Island Dairy was founded in the early 1900s and is one of the largest employers on the island with approximately 1,600 employees.

Leanne Cutts, Saputo’s chief operating officer, said the decision to liquidate the business was difficult.

She said “all possible options” had been considered but closure was the most viable way to strengthen Saputo’s competitiveness in a changing market.

“Given that King Island Dairy has deep historical roots in the region, we hoped the strategic review would identify a potential buyer for the facility,” Cutts said.

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

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

‘(While) King Island Dairy’s products have a nostalgic meaning for Australians, the brand has not been able to maintain its position in today’s highly competitive food industry.’

Saputo, which bought King Island Dairy in 2019, says 58 employees will be affected but that “redeployment opportunities” will be identified where possible.

Ms Cutts said Saputo would work with dairy farmers and the wider island community.

Tasmania’s Premier Jeremy Rockliff called Saputo’s decision “deeply disappointing”.

King Island Dairy began operations in the early 1900s and is one of the largest employers on the island, employing approximately 1,600 people.

“We are providing immediate support to the company’s employees, farmers and the wider community on the island,” he said.

Mr Rockliff said the state government is willing to work with the company to find a new operator.

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

King Island has a unique climate due to its location. The island offers lush pastures for cows and exceptionally sweet milk.

Saputo, which bought King Island Dairy in 2019, says 58 employees will be affected but that “redeployment opportunities” will be identified where possible