After operating for more than 120 years the King Island dairy is set to close after its owner failed to find a buyer for the specialty cheesemaker. The Canadian dairy company Saputo now plans to retire the brand threatening nearly 60 jobs and the viability of dairy farms on the Bass Strait Island.
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00:00A legendary Tasmanian dairy in its final season of operation.
00:07The beloved King Island Dairy brand will disappear next year.
00:12The news today is sad and concerning.
00:16My heart goes out to the dedicated employees at King Island Dairy.
00:19I challenge them for the remaining nine months of operation to make the best cheese they've
00:23ever made.
00:24King Island Dairy is the largest employer on the Bass Strait Island and its closure
00:29will leave nearly 60 workers out of a job.
00:32It's utterly devastating to be honest.
00:34This is going to have a large impact on the community.
00:38Nearly a year ago, Saputo Dairy Australia confirmed it was considering selling the business
00:42but it hasn't found a buyer, saying today,
00:46After thoroughly reviewing every possible option, closure of the facility was determined
00:51as the most viable way to strengthen SDA's competitiveness based on changing industry
00:56and market conditions.
00:58Approximately 58 impacted employees have been informed of the decision.
01:03Where possible, SDA will identify redeployment opportunities and where alternative roles
01:08are not available, employees will be provided with their full entitlements and outplacement
01:13support.
01:14Once renowned for its lush dairy farms, King Island's dairies have dwindled to four.
01:19Those remaining farms now have less than a year to wrap up their operations.
01:25The farmers on King Island have been having a pretty horrendous time over the last few
01:29years.
01:30What we're hoping is that Saputo will be able to help those farmers, whether that's financially
01:35or socially, transition to new enterprises.
01:38Tasmanian Premier Jeremy Rockleaf says the government's providing immediate support
01:42to the workers, the farmers and the wider island community.
01:46He says they're also working with Saputo to find a new buyer.
01:50The announcement comes amid a dwindling Australian milk supply and skyrocketing manufacturing
01:55costs.
01:56But hope remains.
01:57Well, we've seen other famous Australian brands that have been rescued in recent times, like
02:01Vegemite, Dryers of Bone and R.L. Williams and others.
02:06So I hold out the faint hope that that might still happen for King Island Dairy.