King Island farmer Deb Delaney: You can’t underestimate ripple effect of dairy brand’s closure
A farmer reveals the deep impact the closure of iconic King Island Dairy will have on the island. Her passionate message to Australians.
Tasmania
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After facing the worst ever drought, King Island farmer Deb Delaney is making an impassioned plea for Australians to demand the owners of the King Island Dairy – slated to close – ensure the brand survives and thrives.
Ms Delaney, a hobby farmer who is TasFarmers King Island drought co-ordinator, said when she moved to King Island 22 years ago there were 24 dairy farms and now there were only four, including two run by Saputo, who announced the King Island Dairy would close in 2025.
“This has come off the back of the worst drought that the island’s ever seen,” she said.
“In terms of how people are feeling it, it’s an extravagant hit to our community, to our farmers, to the staff at the King Island Dairy themselves, to our economy, to the viability of the island.
“Place yourself in the farmers’ position.
“You’ve suddenly been told that your whole business, your animals, your herd of dairy cows, your whole family, everything has been upturned at the hands of a corporate that decides that a brand is no longer worth valuing.”
Ms Delaney said the dairy had been part of the social fabric for 100 years and was “part of how we identify as a community”.
She said it was an opportunity for Saputo to “show corporate social responsibility”.
“The challenge is back on Saputo to enable the brand to continue and that they don’t mothball it like other corporates.
“There’s a broad conversation to be had. Do we as Australians care about community?
“Do we care about agriculture in this country?
“My challenge to Australia is, let’s step up.
“Let’s say to companies like Saputo you have to demonstrate good social license and community license and ensure that these brands survive in some capacity, and that communities and agriculture flourishes.”
Ms Delaney said the drought had been so bad it was feared there would not be enough water for livestock with huge amounts of feed imported and herds reduced.
“You can’t underestimate the ripple effect of this, you can’t put a cost on it, everyone is affected from the netball teams in the grand final tonight to the football club, everyone.”
Minister Guy Barnett repeated Premier Jeremy Rockliff’s statement on Thursday when news broke of the closure that the government would do everything it could to keep the dairy, which employs 58 workers, to stay open.
“We’ll leave no stone unturned to see if we can continue the operation for the sake of the entire community.”
He said it “beggar’s belief” that Labor supported a boycott of products over a pay claim in support of workers.
Mr Rockliff is expected to visit King Island and is working with Saputo and government departments to try to find an investor to continue running the dairy.
Labor leader Dean Winter said the closure was “devastating” and urged Mr Rockliff to ensure the dairy had a strong future.
Mayor’s hopes for doomed dairy operation
King Island mayor Marcus Blackie, who became a cheesemaker when he left the Army, says the local dairy made the island a “household name” with its specialty cheeses.
Mr Blackie said the closure of the dairy was personal for him because he once worked there.
“It’s the brand that made King Island a household name around Australia,” he said.
“Everyone forgets King Island Dairy was the first to put camembert and brie on Australian supermarket shelves.
“It’s been such a pioneering, historic company, they are family to all of us and a legendary Australian brand we are immensely proud of here.
“King Island Dairy boasts the fullest trophy cabinet of any corporate headquarters I have ever visited. I pray there may still be a way for our historic dairy to survive.”
Mr Blackie is hoping a buyer will be found.
“I’d hope that someone like Bega might pick it up, I know that Bega have always admired it from afar, the same with Fonterra and other cheesemakers.”
TasFarmers president Ian Sauer said Saputo needed to be good corporate citizens and help farmers to keep the dairy open.
“It’s sad, it’s disappointing, it’s a kick in the guts for the farmers on King Island,” he said.
“It’s really hard to describe that this iconic brand is now going to sort of float off into the ether.”
Mr Sauer said there were about 2000 dairy cows on four farms on King Island and Saputo needed “to try harder to sell that brand”.
“The issue is that corporates sometimes don’t understand the nuances of really small, boutique types of brands,” he said.
“It’s really important the farmers over there who are going to be impacted have a say in their future.
“It’s going to have a major economic and social impact upon the King Island community.”
Shock decision: Iconic Tasmanian Dairy operation to close
September 5, 2:15pm
In a shock announcement, the popular King Island Dairy will close mid next year.
The maker of popular handmade specialty cheeses and cream will be retired and 58 workers at the 100-year-old plant will be impacted by the decision of Saputo Dairy Australia (SDA) announced on Thursday.
It follows the imminent sale of National Pies to a Hong-Kong based firm.
Saputo says the closure follows an intensive review over the past 10 months of all commercial and financial alternatives for King Island Dairy, including a potential sale to a third party.
It says its immediate focus is work with its valued King Island employees, dairy farmers and the broader King Island community to support them through the transition period.
Leanne Cutts, president and chief operating officer (International and Europe), Saputo Inc., said the decision had not been taken lightly.
“As King Island Dairy’s historic roots are deeply embedded in the region, it was hoped the strategic review would identify a potential buyer for the facility,” she said.
“We have invested more than $40m in all our Tasmanian operations over the past five years.”
Ms Cutts said other Tasmanian brands such as Mersey Valley and Tasmanian Heritage were thriving, and King Island Dairy products held “a nostalgic place in the hearts of Australians, the brand has not maintained its position in today’s ultra-competitive food industry”.
“This decision does not reflect the commitment of our hardworking and dedicated King Island employees and dairy farmers,” she said.
“The King Island community has done everything they can to support us and we will continue to work collaboratively with the Tasmanian government.
“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,” Ms Cutts said.
Saputo is currently involved in a prolonged wage dispute with North-West workers.
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