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Saputo Dairy Australia announces King Island Dairy to close for good

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King Island Dairy is known for its hand-made specialty cheeses

Global dairy giant Saputo has confirmed it plans to kill off the King Island Dairy brand for good next year.

Saputo Dairy Australia said the decision comes as the “nostalgic” favourite “has not maintained its position in today’s ultra-competitive food industry”.

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President and Chief Operating Officer for International and European markets Leanne Cutts said the company considered all options, including a potential sale to a third party.

She said they ultimately decided that closure was the best way to enhance their competitiveness in the face of changing market conditions.

King Island Dairy’s historic roots are deeply embedded in the island

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

“This decision does not reflect the commitment of our hard-working and dedicated King Island employees and dairy farmers.”

Around 58 employees will be affected by the closure of King Island Dairy

The closure will impact approximately 58 employees, who will be offered redeployment opportunities where possible.

Cutts said their other Tasmanian brands, including Mersey Valley and Tasmanian Heritage, are “thriving”.

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“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,” Cutts said.

Premier Jeremy Rockliff said a “response team” has been established to “work with the King Island community and business leaders to support local businesses, workers and families through this period”.

Premier Jeremy Rockliff holds a block of King Island Dairy Smoked Cheddar

“We are also working with the company in an effort to find a new operator for this iconic dairy,” he said.

“Saputo’s decision to exit King Island next year is very disappointing.”

“We will always be in King Island’s corner and have a strong focus on ensuring a positive future for King Island and the entire community.”

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