The Tasmanian Government has called out international dairy giant Saputo for its “concerning” approach to the potential sale of the King Island Dairy brand.
Premier Jeremy Rockliff said the government has been working with several interested parties to find a new owner who values the brand’s legacy and importance to the state.
“We have been engaging with stakeholders and exploring every possible avenue to ensure a smooth transition to new ownership that will invest in the brand and its people,” he said.
Saputo, which acquired the 120-year-old King Island Dairy in 2019, has publicly expressed an intent to close the business next year.
The company says the brand has been unable to compete in an ‘ultra-competitive market’.
Rockliff is concerned that the company’s foreign headquarters may not be committed to finding a buyer.
“It would be a real blow to King Island if the multinational behemoth is planning to walk away from the King Island Diary brand to promote its other brands,” Rockliff said.
“We do not call out this behaviour lightly, but we will not stand idly by while a global company welshes on its responsibility to work with the government for the benefit of Tasmania.”
King Island Dairy is a major employer on the island and about 58 employees will be impacted its looming closure.
The King Island Dairy brand produces several varieties of cheeses, which are sold both within Australia and internationally.
