News Releases

5 September 2024

Today, after careful consideration, Saputo Dairy Australia (SDA) announces it has made the difficult decision to commence the final operating season of King Island Dairy, with the intention of closing the facility and retiring the brand in mid 2025.

Over the past 10 months, SDA has 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. SDA’s immediate focus will be to work with its valued King Island employees, dairy farmers and the broader King Island community to support them through the transition period.

Leanne Cutts, President and Chief Operating Officer (International and Europe), Saputo Inc., said this decision had not been taken lightly. After thoroughly reviewing every possible option, closure of the facility was determined as the most viable way to strengthen SDA’s competitiveness based on changing industry and market conditions.

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

“We have invested more than $40m 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.

“This decision does not reflect the commitment of our hard-working and dedicated King Island employees and dairy farmers. The King Island community has done everything they can to support us and we will continue to work collaboratively with the Tasmanian Government.

“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,” Ms Cutts said.

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.

SDA will consult with employees, union representatives, dairy farmers, customers, King Island Council and the Tasmanian Government to discuss the impacts of this decision and ongoing transition support. In the interim, King Island Dairy will continue producing its specialty cheeses as the business develops a closure transition plan.

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Media inquiries: sda.communications@saputo.com