King Island Dairy Faces Uncertain Future Amid Factory Closure Plans
Source: DairyNews.today
King Island Dairy, the largest employer on Tasmania’s Bass Strait island, is set to close its factory next year, sending shockwaves through the local community. The closure marks another chapter in the island’s industrial decline, which has seen major industries come and go over the past few decades, leaving many residents contemplating whether they need to move away in search of employment.
Premier Jeremy Rockliff has expressed hope that the factory could still be sold, offering a potential lifeline for King Islanders who are determined not to give up. For decades, economic shifts have hit the island hard, leading to the closure of significant employers and a dwindling population.
Cheesemaker Tam Ghazarian, who has worked at King Island Dairy for 11 years, is among the employees now facing an uncertain future. “It’s incredibly disappointing,” Ghazarian said. “Many people here will struggle to find new jobs given the limited opportunities on the island. I myself may have to sell and leave.”
Earlier this month, the Canadian-based owner Saputo announced that the upcoming season of cheesemaking would be the factory’s last, following a failed attempt to find a buyer. This news follows a long history of industrial closures on King Island, from the closure of the Grassy Mine in the 1990s to the shutdown of the island’s abattoir by multinational owner JBS in the early 2000s.
A History of Industry and Decline
King Island’s population once thrived on its mining and agricultural industries, with the scheelite mine in Grassy employing 500 people at its peak. Over the years, however, the island’s economy has been rocked by closures, including the Grassy Mine in 1992 and the abattoir in 2002. Each closure left a lasting impact on the community, from declining populations to the collapse of local sports clubs and social activities.
By the mid-2010s, King Island Dairy had emerged as the island’s largest employer. Despite the success of its products, including the pioneering effort to bring soft cheeses to Australian supermarkets, the factory’s history has been marred by financial difficulties, a government bailout, and a series of ownership changes.
Today, the number of dairy manufacturing jobs on the island has fallen by 44% since 2006, with fewer than 60 employees currently working at the factory. For workers like Ghazarian, the future remains uncertain. “We saw the writing on the wall when HR showed up in force 10 months ago. It was clear they were considering shutting the factory,” he said.
Dairy Industry in Decline
The factory’s closure is just one part of a broader trend affecting King Island’s dairy industry. Once home to numerous family-owned dairy farms, the island now has only two remaining. Kelly and Phil Lancaster, who run one of these farms, are still supplying milk to the factory but have begun transitioning to beef farming in anticipation of the closure.
“We’ve seen this coming for a decade,” Mrs. Lancaster said. “The decline in dairy farmers has made this inevitable.” The couple plans to sell their farm and leave the island to be closer to family, but they hope that King Island’s rich dairy history will somehow continue.
Hope for the Future
Despite the grim outlook, many King Islanders are not ready to accept defeat. Premier Rockliff remains optimistic that a buyer will come forward before the factory shuts its doors. “The factory is not closed yet,” he reassured the community. Meanwhile, residents like Irene Robins, who remembers the vibrant population and industry of King Island in earlier decades, remain resolute. “We’re King Islanders; we don’t give up,” Robins said.
As the community waits for a resolution, the future of King Island Dairy—and the island’s economy—remains in the balance.
Cheesemaker Tam Ghazarian, who has worked at King Island Dairy for 11 years, is among the employees now facing an uncertain future. “It’s incredibly disappointing,” Ghazarian said. “Many people here will struggle to find new jobs given the limited opportunities on the island. I myself may have to sell and leave.”
Earlier this month, the Canadian-based owner Saputo announced that the upcoming season of cheesemaking would be the factory’s last, following a failed attempt to find a buyer. This news follows a long history of industrial closures on King Island, from the closure of the Grassy Mine in the 1990s to the shutdown of the island’s abattoir by multinational owner JBS in the early 2000s.
A History of Industry and Decline
King Island’s population once thrived on its mining and agricultural industries, with the scheelite mine in Grassy employing 500 people at its peak. Over the years, however, the island’s economy has been rocked by closures, including the Grassy Mine in 1992 and the abattoir in 2002. Each closure left a lasting impact on the community, from declining populations to the collapse of local sports clubs and social activities.
By the mid-2010s, King Island Dairy had emerged as the island’s largest employer. Despite the success of its products, including the pioneering effort to bring soft cheeses to Australian supermarkets, the factory’s history has been marred by financial difficulties, a government bailout, and a series of ownership changes.
Today, the number of dairy manufacturing jobs on the island has fallen by 44% since 2006, with fewer than 60 employees currently working at the factory. For workers like Ghazarian, the future remains uncertain. “We saw the writing on the wall when HR showed up in force 10 months ago. It was clear they were considering shutting the factory,” he said.
Dairy Industry in Decline
The factory’s closure is just one part of a broader trend affecting King Island’s dairy industry. Once home to numerous family-owned dairy farms, the island now has only two remaining. Kelly and Phil Lancaster, who run one of these farms, are still supplying milk to the factory but have begun transitioning to beef farming in anticipation of the closure.
“We’ve seen this coming for a decade,” Mrs. Lancaster said. “The decline in dairy farmers has made this inevitable.” The couple plans to sell their farm and leave the island to be closer to family, but they hope that King Island’s rich dairy history will somehow continue.
Hope for the Future
Despite the grim outlook, many King Islanders are not ready to accept defeat. Premier Rockliff remains optimistic that a buyer will come forward before the factory shuts its doors. “The factory is not closed yet,” he reassured the community. Meanwhile, residents like Irene Robins, who remembers the vibrant population and industry of King Island in earlier decades, remain resolute. “We’re King Islanders; we don’t give up,” Robins said.
As the community waits for a resolution, the future of King Island Dairy—and the island’s economy—remains in the balance.
23.09.2024
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