In a positive turn for the company and region, Saputo Dairy Australia (SDA) has entered into a binding agreement to sell its over 120-year-old King Island Dairy business, after more than a year of uncertainty surrounding its future.
The dairy company initially stated it was conducting a review of the Tasmanian King Island Dairy plant in November 2023, to scope out options for its future. After 10 months of attempting to maximise value for the business and looking for commercial and financial alternatives for King Island Dairy, SDA announced the brand would be retired in mid-2025.
Following the closure announcement in September 2024, Saputo continued to work collaboratively with the Tasmanian Government to identify a more favourable outcome, as King Island Dairy’s historic roots are deeply embedded in the region.
Now there are fresh hopes on the horizon, with soon-to-be owners King Island Dairy 2 agreeing to offer impacted employees the opportunity to transfer their employment to the new business, to help support the future of King Island Dairy and its specialty cheese products.
King Island Dairy 2 is a newly formed entity, reportedly led by two Australian businessmen with supply chain and manufacturing experience. The buyer is expected to make their own announcement in the coming days.
SDA director of operations and supply chain, Gerard Lourey, said the company took great care to find a buyer committed to continuing the manufacturing operations and preserving jobs on King Island.
“We are very pleased to have reached a sale agreement for the buyer to purchase the King Island Dairy facility and brand, the onsite cheese store, and two local farms that provide a guaranteed milk supply,” said Lourey.
“We deeply appreciate the ongoing support of our dedicated King Island employees, suppliers, customers, the local council and the Tasmanian Government during this challenging period for King Island Dairy. We thank them for their patience, resilience and collaboration.
“While King Island Dairy will not be part of our portfolio moving forward, SDA remains committed to further growing the value of our domestic and premium export products as part of our long-term vision for success in Australia,” he said.
All impacted employees have been advised of the sale, with the sale transaction expected to be completed by mid-year. SDA will work closely with the site team and provide all necessary support to ensure a successful transition to the new owner.
