State government ‘exploring every possible avenue’ to keep King Island Dairy open

‘2024 has tested the resolve of King Island like never before.’ Mayor remains confident despite the Premier claiming not enough is being done to secure new owners for King Island Dairy.

King Island Dairy Farmers. The Millwood family on their dairy farm. King Island cheese with Dairy cows

Premier Jeremy Rockliff says the state government has “brought several interested parties to the table” regarding the sale of King Island Dairy while taking a swipe at the business’ outgoing owner.

In September, Saputo announced it would close King Island Dairy by mid-2025, with the company saying at the time that “the brand has not maintained its position

in today’s ultra-competitive food industry.”

The state government has been working with Saputo to find a new owner for King Island Dairy.

Premier Jeremy Rockliff. Final day of state parliament for 2024. Picture: Nikki Davis-Jones

Mr Rockliff said he was becoming increasingly concerned that Saputo was not committed to finding a buyer.

“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.

“The Tasmanian Government has provided targeted support to attract potential buyers and facilitate discussions with parties who understand the unique heritage of King Island Dairy.

“The priority remains to secure a buyer who will uphold the high standards of production, protect local jobs, and maintain the integrity of the Tasmanian brand.

“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.

“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.”

Saputo did not respond to questions posed by The Mercury

King Island Mayor Marcus Blackie. Picture: Supplied.

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King Island Mayor Marcus Blackie was confident a buyer could be found.

“I remain cautiously optimistic that King Island Dairy can still be saved; serious moves are afoot at the moment to hopefully make that happen,” Mr Blackie said.

“In the meantime, I know the workers of King Island Dairy have set themselves the commendable challenge of making the best cheese ever in their long history, which we can all draw inspiration from.”

Mr Blackie said with the potential closure of the dairy, a significant drought, and its tungsten mine almost collapsing, it had been a challenging period for King Island.

“2024 has tested the resolve of King Island like never before, but along the way, we have held fast and kept the faith.

“In spite of all the challenges thrown at us in 2024, our morale remains high, and we remain optimistic for the overall future of King Island.

“I commend the resilience, ingenuity, and solidarity of our people in what has been a very tough year to carry the Mayor badge.”

Mr Blackie said his community may “look back on 2024 as our finest hour”.

“When you arrive at an existential and generational crossroads, you are compelled to reinvent yourself.

“Whilst some industries may be in decline on King Island, there are many other growth industries such as golf tourism, grass-fed beef, Tungsten mining, seafood export and kelping that more than balance our ledger.”