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120 years old Australian cheese dairy King Island shuts down

An iconic Australian cheese producer is closing its doors after, discontinuing the beloved brand after more than 120 years.

Tasmania’s King Island Dairy will no longer operate from mid-2025, parent company Saputo revealed on Thursday.

The dairy giant launched a strategic review of the facility 10 months ago, making the decision to retire the brand after it was unable to find a buyer.

Saputo Dairy Australia president Leanne Cutts said the decision to close the brand “had not been taken lightly”.

She said the brand had spent 10 months conducting an “intensive review” of the commercial and financial alternatives, which included selling it to a third party.

The brand had been in production for 120 years.

“After thoroughly reviewing every possible option, closure of the facility was determined as the most viable way to strengthen SDA’s competitiveness based on changing industry and market conditions,” Ms Cutts said.

She said the decision to cease operations was due to a “changing industry”.

“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 in the statement.

“It is a unique brand, with a plant that is nearly 100 years old and designed to produce handmade specialty cheeses.

King Island Dairy is closing its doors in mid-2025.

“We have invested more than $40 million in all our Tasmanian operations over the past five years.”

Ms Cutts said the brand was nostalgic for many Australians but it has struggled to maintain a position in the “ultra-competitive” food industry.

Saputo bought King Island Dairy in 2019 and says the 58 jobs will be impacted by the closure in mid-2025.

But “redeployment opportunities” will be made where possible, with Saputo continuing to work with dairy farmers in the community.

Tasmanian Premier Jeremy Rockliff said the decision was disappointing, with the government providing immediate support to workers, farmers and the local community.

Source:-News Australia by Lauren Ferri

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