Saputo to close King Island Dairy

Canadian owned Saputo Dairy Australia has announced the last operating season of King Island Dairy, planning to close the facility and retiring the brand in mid 2025.

The decision comes after a 10 month review that ‘sought to maximise value for the business by conducting an intensive review of all commercial and financial alternatives for King Island Dairy, including a potential sale to a third party’, according to the company.

The President and Chief Operating Officer (International and Europe), Saputo Inc. Leanne Cutts said the decision had not been taken lightly, with the closure the ‘most viable way to strengthen SDA’s competitiveness.

Cutts said: “We have invested more than $40 million in all our Tasmanian operations over the past five years.

“While our other Tasmanian brands such as Mersey Valley and Tasmanian Heritage are thriving, and 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.”

Cutts said it had been hoped the strategic review would identify a potential buyer for the facility.

“It is a unique brand, with a plant that is nearly 100 years old and designed to produce hand-made specialty cheeses.

“SDA remains firmly committed to Australia and will continue to invest in North-West Tasmania, as well as our other operating and supply regions, to deliver on our vision for long-term success here.”

Approximately 58 impacted employees have been informed of the decision.

Where possible, SDA will identify redeployment opportunities, and where alternative roles are not available, employees will be provided with their full entitlements and outplacement support.

In the interim, King Island Dairy will continue producing its specialty cheeses as the business develops a closure transition plan.

Picture: King Island Dairy