Saputo Australia will close its King Island plant by mid-2025, the family-owned Canadian dairy company announced on Monday. Joy Saputo (son of the founder Emanuel “Lino” Saputo) president of Bologna football club. The announcement was made in a statement in which the company stressed that “after careful consideration, Saputo Dairy Australia (SDA)” has made “the difficult decision to begin the final operating season of King Island Dairy, with the intention of closing the plant and retiring the brand in mid-2025”.
“Over the past ten months,” the dairy company continued, “SDA has sought to maximize value for the business by conducting an intensive review of all commercial and financial alternatives for King Island Dairy, including a potential sale to a third party. SDA’s immediate focus will be on working with its valued King Island employees, dairy farmers and the wider King Island community to support them through the transition period.”
Approximately 58 employees are affected and have been informed of the decision, where possible Saputo Dairy Australia will identify redeployment opportunities and, where alternative roles are not available, employees will be fully supported for their rights and outplacement. The company says it intends to consult with employees, union representatives, dairy farmers, customers, King Island Council and the Tasmanian Government to discuss the impacts of this decision and ongoing transition support. In the meantime, King Island Dairy will continue to produce its specialty cheeses while the company develops a transition plan for the closure.
Leanne Cuttspresident and chief operating officer (international and Europe), Saputo Inc., said that this decision was not made lightly: after carefully examining every possible option, it was determined that closing the plant was the most effective way to strengthen SDA’s competitiveness as industry and market conditions evolve.
“Because King Island Dairy’s historic roots are deeply rooted in the region,” he explains Cutts-, it was hoped that the strategic review would identify a potential buyer for the facility. It is a unique brand, with a plant that is almost 100 years old and designed to produce hand-crafted specialty cheeses. We have invested more than $40 million across our Tasmanian operations in the last five years. While our other Tasmanian brands such as Mersey Valley and Tasmanian Heritage are in full development, and King Island dairy products hold a nostalgic place in the hearts of Australians, the brand has not held its ground in today’s ultra-competitive food industry.”
“This decision -continues Cutts– does not reflect the commitment of our hard-working and dedicated employees and dairy farmers on King Island. The King Island community has gone out of its way to support us and we will continue to work in partnership with the Tasmanian Government. SDA remains firmly committed to Australia and will continue to invest in North West Tasmania, as well as our other operating and sourcing regions, to realise our vision for long-term success here.”