TasFarmers urges corporate responsibility as King Island Dairy faces uncertain future


05 September 2024

Tasmania’s peak farming body, TasFarmers, has expressed grave concerns about the potential closure of King Island’s iconic dairy operations, calling on the current owner to act as a responsible corporate citizen following its decision to close the milk island’s processing facility.

TasFarmers president Ian Sauer said this news came at the worst possible time, as King Island grapples with the worst drought in over 100 years, ongoing shipping difficulties and the rising cost of doing business.

Mr Sauer said, “This decision is a kick in the guts for farmers and Saputo’s decision will have a devastating impact on dairy farmers and the island community. Dairy is a major employer and the flow-on effect will be felt through the entire community, from the supermarket to the hotel, and even the local hospital.

“These farmers have faced relentless hardships, and for those who’ve worked so hard to build a world-renowned and respected brand, this blow from Saputo is heartbreaking.”

“We urge Saputo to ensure a smooth as possible transition, they need to look harder for a buyer of the dairy or support farmers as they shift into other enterprises.

“As a large multinational company, Saputo cannot simply walk away. They need to support the farmers through this difficult time. Failing to secure a responsible pathway forward risks damaging Saputo's reputation as a major employer in Tasmania.  

“We hope that ongoing industrial action hasn’t influenced this decision. The focus should remain on the wants and needs of King Island’s farmers.

“The cost of transitioning will be enormous for these producers. The dairy industry on King Island has had a tough journey, and we genuinely feel for the farmers. We’re all part of one big family in agriculture,” said Mr Sauer.