King Island Dairy, which has been a prominent Australian cheese manufacturer for over a century, will close after failing to find a buyer.
The business, which was owned by Saputo Australia, will end its operations in 2025.
It had been operating under a cloud of uncertainty for several months following a strategic review.
King Island Dairy was established in the 1900s and is one of the region’s biggest employers, with around 1600 workers.
Leanne Cutts, the chief operating officer of Saputo, said the company had considered various options, but the closure was the most effective way to strengthen its competitive position.
It had been hoped that the company would find a buyer for the business, as its history is deeply rooted in the region. The plant, which is almost a hundred years old, is a unique brand.
Other brands in Tasmania, such as Tasmanian Heritage and Mersey Valley, continue to thrive.
Despite the popularity of King Island Dairy products, the company has not been able to maintain its position in the competitive environment. In 2019, Saputo purchased the business.
Although 58 workers will lose their jobs, the company noted that redeploy opportunities would be available.
According to Ms. Cutts, the company will work with the island’s residents and dairy farmers.
The Premier of Tasmania, Jeremy Rockliff, expressed his sadness at the company’s decision and said the government was prepared to assist the workers and the community in any way it could.
One of the world’s top 10 dairy processors, Saputo is based in King Island.
The climate on the island is ideal for growing dairy cows, and it produces sweet milk with a unique flavor.