Media release – Saputo Dairy Australia (SDA), 7 March 2025
Saputo Dairy Australia announces the sale of King Island Dairy
Saputo Dairy Australia (SDA) is pleased to announce it has entered into a binding agreement to sell its King Island Dairy business. As part of the agreement, impacted employees will receive an offer to transfer their employment to the new owner to help support the future of King Island Dairy and its renowned specialty cheese products.
Following last September’s closure announcement, Saputo continued to work collaboratively with the Tasmanian Government as part of ongoing efforts to identify a more favourable outcome. As King Island Dairy’s historic roots are deeply embedded in the region, SDA remained hopeful of finding an alternative solution given the substantial impact on employees and the broader community.
Gerard Lourey, SDA Director of Operations and Supply Chain, said that while the pathway to achieving a sale has not been straightforward, Saputo took great care to find a suitable buyer that we believe is committed to continuing the manufacturing operations and preserving jobs on King Island.
“We are very pleased to have reached a sale agreement for the buyer to purchase the King Island Dairy facility and brand, the onsite Cheese Store and two local farms that provide a guaranteed milk supply.
“We deeply appreciate the ongoing support of our dedicated King Island employees, suppliers, customers, the local council and the Tasmanian Government during this challenging period for King Island Dairy. We thank them for their patience, resilience and collaboration.
“While King Island Dairy will not be part of our portfolio moving forward, SDA remains committed to further growing the value of our domestic and premium export products as part of our long-term vision for success in Australia,” he said.
All impacted employees have been advised of the sale, with the sale transaction expected to be completed by mid-year. SDA will work closely with the site team and provide all necessary support to ensure a successful transition to the new owner.
Editor’s note: The buyer is a newly formed entity, King Island Dairy 2 Pty Ltd, led by two Australian businessmen with supply chain and manufacturing expertise. While SDA has disclosed the sale to ‘notify and provide certainty for their employees’, the buyer is expected make their own announcement in the coming days.
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Media release – Jeremy Rockliff, Premier, 7 March 2025
Future of King Island Dairy secure
Almost a year ago to the day, I said that King Island Dairy would not close on my watch.
Following an enormous effort from many to secure a buyer, I’m proud to say that the King Island Dairy has a bright future ahead.
I will always fight for the best interests of Tasmania and when it was clear that Saputo was willing to walk away and close the dairy, we knew it was on our Government to save the dairy.
Not only will King Island Dairy remain open and continue employing locals on the Island for years to come – the Dairy and brand will be coming back into Australian hands.
This is a big win for all King Islanders, and Tasmanians.
I look forward to joining the new buyers in the coming days and hearing their plans for the future of King Island Dairy.
Media release – Braddon independent MHA Miriam Beswick, 7 March 2025
DAIRY SALE REFRESHINGLY GOOD NEWS
Braddon Independent Miriam Beswick has warmly welcomed news that King Island Dairy will have a new Australian owner.
“This must be such a relief for the employees and their families,” Mrs Beswick.
“But the continuation of this iconic brand will also be celebrated widely. It’s especially pleasing to hear that the brand will be in Australian hands.
“Many Tasmanians feel a close connection to our island communities, even if they’re not frequent visitors. The Premier’s decision to call out Saputo’s lack of action was the right one and I’m glad it’s resulted in a positive outcome.
“I’d also like to recognise King Island Mayor Marcus Blackie and other leaders in the community who have advocated tirelessly.
“I look forward to meeting with the new owners to hear about their plans for the terrific brand they’ve inherited. I’m also very much looking forward to my next trip to King Island to engage on a host of key issues facing the community.”
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