Saputo Dairy Australia finds Aussie buyer for King Island Dairy
On 5 September 2024, Saputo Dairy Australia (SDA) announced its decision to commence the final operating season of King Island Dairy, with the intention of closing the facility and retiring the brand in mid-2025; however, now SDA has found a buyer.
SDA announced on 7 March 2025 it has now entered into a binding agreement to sell its King Island Dairy business to a newly formed entity, King Island Dairy 2 Pty Ltd, led by two experienced Australian businessmen with supply chain and manufacturing expertise.
Following the closure announcement last year, Saputo continued to work collaboratively with the Tasmanian Government as part of ongoing efforts to identify a more favourable outcome. As King Island Dairy’s historic roots are deeply embedded in the region, SDA remained hopeful of finding an alternative solution given the substantial impact on employees and the broader community.
Gerard Lourey, SDA Director of Operations and Supply Chain, said that while the pathway to achieving a sale has not been straightforward, Saputo took great care to find a suitable buyer that was committed to continuing the manufacturing operations and preserving jobs on King Island.
“We are very pleased to have reached a sale agreement for the buyer to purchase the King Island Dairy facility and brand, the onsite Cheese Store and two local farms that provide a guaranteed milk supply,” he said.
“We deeply appreciate the ongoing support of our dedicated King Island employees, suppliers, customers, the local council and the Tasmanian Government during this challenging period for King Island Dairy. We thank them for their patience, resilience and collaboration.
“While King Island Dairy will not be part of our portfolio moving forward, SDA remains committed to further growing the value of our domestic and premium export products as part of our long-term vision for success in Australia.”
All impacted employees have been advised of the sale, with the transaction expected to be completed by mid-year.
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