The future of King Island Dairy hangs in the balance after Saputo Dairy Australia announced plans to shut down the historic facility by mid-2025.
The decision has sparked outrage within the island’s farming community, with TasFarmers president Ian Sauer describing it as a “kick in the guts”.
Saputo, which also owns brands like Mersey Valley and Tasmanian Heritage, insists that while their other businesses are thriving, King Island Dairy has “not maintained its position” in the highly competitive food market.
Sauer said the move comes at the “worst possible time” for the island, as they battle their toughest drought in over a century, ongoing shipping issues and rising business costs.
“Dairy is a major employer and the flow-on effect will be felt through the entire community, from the supermarket to the hotel and even the local hospital,” he said.
“These farmers have faced relentless hardships and for those who’ve worked so hard to build a world-renowned and respected brand, this blow from Saputo is heartbreaking.”
He urged Saputo to facilitate a smooth transition, either by finding a buyer for the dairy or supporting farmers as they shift into other enterprises.
“As a large multinational company, Saputo cannot simply walk away. They need to support the farmers through this difficult time,” he said.
Saputo’s decision will impact around 58 employees.
The company said that where possible, redeployment opportunities will be offered.
