'Under New Management' Farmers relieved as King Island dairy remains open

Tasmania’s peak industry body, TasFarmers, has welcomed the news that the Saputo-owned King Island Dairy will remain open under new management following its sale to two Australian business leaders.

TasFarmers had been concerned that the potential sale or closure of King Island Dairy could have significant economic ramifications for the island’s community.

CEO of TasFarmers, Nathan Calman, said the King Island community takes immense pride in the King Island Dairy brand, which plays a crucial role in both the island’s identity and its economic sustainability.

"We advocated to all levels of government and to Saputo to ensure the site did not close. Our goal was to secure a future owner who would act as a custodian of the factory, preserving its legacy and continuing its operations on the island."

"Our primary focus was to ensure that King Island’s dairy production remains on the island, with a viable operational presence and a stable milk supply.

"This outcome is a very welcome one. We look forward to meeting the new owners, and we know King Islanders are relieved and reassured by this announcement. Their concerns have been heard, and their dairy is here to stay."

Mr Calman congratulated Saputo on securing a positive outcome but acknowledged that the sale process has been an extremely stressful period for island residents whose livelihoods depend on employment at the dairy.

"It’s fair to say that this sale process has been tough. However, this outcome is far better than the alternative, whether that be closure or King Island Dairy becoming another state-owned enterprise."

He further emphasised that the sale highlights the strong market demand for premium Tasmanian agricultural products, reaffirming the island’s reputation for clean, high-quality produce.

"This sale reaffirms that Tasmanian farms produce high-quality agricultural products that command a premium in the market."

Mr Calman also called governments of all colours particularly in the lead-up to the federal election to recognise the critical role freight and logistics play in supporting King Island’s industries, including both dairy and beef production.

"All industries on King Island depend on reliable and efficient freight links to reach premium markets across Australia. The current shipping services and freight equalization measures are not fit for purpose and require urgent reform.”