A beloved cheesemaker was forced to close after 120 years, leaving 58 employees in limbo.
Tasmania’s King Island Dairy will close in the middle of next year, owner Saputo announced on Thursday.
The future of the business had been in doubt 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 island’s largest employers, home to approximately 1,600 people.
Saputo chief operating officer Leanne Cutts said the decision to close the business was a difficult one.
He said “all possible options” had been explored but closure was the most viable way to strengthen Saputo’s competitiveness in a changing market.
“As King Island Dairy’s historic roots run deep 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 almost 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 held its ground in today’s ultra-competitive food industry.’
Saputo, which bought King Island Dairy in 2019, says 58 employees will be affected but “redeployment opportunities” will be identified where possible.
Ms Cutts said Saputo would work with dairy farmers and the wider community on the island.
Tasmanian Premier Jeremy Rockliff said Saputo’s decision was deeply disappointing.
“We are providing immediate support to the company’s workers, farmers and the island’s community in general,” 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 world’s top 10 dairy processors.
King Island has a unique climate due to its location and offers lush pastures for cows and unusually sweet milk.
