Saputo seeks buyer for King Island Dairy

Saputo is seeking a buyer for King Island Dairy, the latest in a series of factory changes by the Canadian processor.

Saputo is seeking a buyer for its King Island Dairy operations, revealing it is seeking to offload its interests on the Bass Strait isle.

Management announced a “strategic review of its King Island Dairy facility in Tasmania” this morning as well as confirming an additional $27 million towards improvement projects across its sites in Victoria and Tasmania.

The review will consider a range of commercial alternatives, including a potential sale to a third party, with its 63 staff informed of the financial deliberations.

Saputo chief operating officer Leanne Cutts said the processor hoped to find a buyer for King Island Dairy soon.

“In making these investments and strategic decisions, we remain focused on maximising our return for every litre of milk,” she said.

“(This will) further enhance SDA’s position as a high-quality, low-cost processor in Australia.”

Cheese from King Island Dairy.

Last month, Saputo boss Lino Saputo Jr flagged potential Australian factory closures at a Canadian business conference.

Saputo is also in the process of selling its Laverton and Erskine Park processing sites, subject to regulatory approval.

“As King Island Dairy’s historic roots are deeply embedded in the region, we hope to find a buyer for the facility to ensure the continued success of its renowned specialty cheese products,” Ms Cutts said.

“We recognise the potential impact any decision may have on the King Island community, especially our employees and dairy farmers, and we are committed to thoughtfully considering all possible scenarios before any decisions are made.”

Last year, more than 70 people lost their jobs in Maffra when Saputo made sweeping cuts to its Gippsland operations.

Bulk powder production at its Leongatha site and cheese packaging at Mil-Lel, near Mount Gambier, was also shut down.

Earlier in 2022, Saputo closed its cheese slice line at the Cobram factory in northern Victoria.

Ms Cutts said today’s announcement “builds on SDA’s previously confirmed consolidation initiatives that aim to align our manufacturing footprint.”

“Once completed, this strategic review of King Island Dairy will conclude our current challenge to strengthen our competitiveness,” she said.