Historic King Island Dairy Set to Close After Buyer Search Fails
Source: DairyNews.today
Saputo Dairy Australia (SDA) has announced the closure of the historic King Island Dairy factory, dealing a significant blow to Tasmania's economy and affecting 58 employees. The decision comes after a 10-month search for a buyer, which proved unsuccessful, prompting SDA to begin the final operating season of the dairy with plans to cease operations and retire the brand by mid-2024.
SDA, in a statement released on September 5, explained the “difficult decision” was made after an exhaustive review of all commercial and financial options, including the potential sale of the factory. "SDA's immediate focus will be to work with its valued King Island employees, dairy farmers, and the broader King Island community to support them through the transition period," the statement said.
Leanne Cutts, President and Chief Operating Officer of SDA, emphasized that closing the facility was deemed the most viable option in light of evolving industry and market conditions. "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," Cutts said, highlighting the uniqueness of the nearly 100-year-old brand, which is renowned for producing hand-made cheeses.
Over the past five years, SDA has invested over $40 million in its Tasmanian operations. While other brands under the SDA umbrella, such as Mersey Valley and Tasmanian Heritage, continue to thrive, King Island Dairy has struggled to maintain its market position in today's highly competitive food industry.
SDA emphasized that the closure decision was not a reflection of the commitment and hard work of its King Island employees and dairy farmers. "The King Island community has done everything they can to support us, and we will continue to work collaboratively with the Tasmanian Government," the company added.
SDA will consult with employees, union representatives, dairy farmers, and local and state authorities to discuss the impact of the closure and provide ongoing transition support. Impacted employees will be offered redeployment opportunities where available or receive full entitlements and outplacement support if alternative roles are not found.
In the meantime, King Island Dairy will continue producing its cheeses as a closure transition plan is developed, allowing the brand's legacy to carry on for a short while longer before its final retirement next year.
Leanne Cutts, President and Chief Operating Officer of SDA, emphasized that closing the facility was deemed the most viable option in light of evolving industry and market conditions. "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," Cutts said, highlighting the uniqueness of the nearly 100-year-old brand, which is renowned for producing hand-made cheeses.
Over the past five years, SDA has invested over $40 million in its Tasmanian operations. While other brands under the SDA umbrella, such as Mersey Valley and Tasmanian Heritage, continue to thrive, King Island Dairy has struggled to maintain its market position in today's highly competitive food industry.
SDA emphasized that the closure decision was not a reflection of the commitment and hard work of its King Island employees and dairy farmers. "The King Island community has done everything they can to support us, and we will continue to work collaboratively with the Tasmanian Government," the company added.
SDA will consult with employees, union representatives, dairy farmers, and local and state authorities to discuss the impact of the closure and provide ongoing transition support. Impacted employees will be offered redeployment opportunities where available or receive full entitlements and outplacement support if alternative roles are not found.
In the meantime, King Island Dairy will continue producing its cheeses as a closure transition plan is developed, allowing the brand's legacy to carry on for a short while longer before its final retirement next year.
23.09.2024
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