King Island Dairy, Australia’s Oldest Cheesemaker, Closes After 120 Years

In a significant blow to Australia’s dairy industry, King Island Dairy, a beloved and iconic cheese producer, is set to close its doors after more than 120 years of operation. The decision was announced by Saputo, the dairy giant that acquired King Island Dairy in 2019.

Saputo initiated a strategic review of the King Island Dairy facility ten months ago, exploring various options for its future. Despite extensive efforts to find a buyer, the company was unable to secure a suitable partner. As a result, the difficult decision was made to discontinue the brand.

“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.

“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.