In a decisive move for Tasmania’s cheese industry, Saputo Dairy Australia has struck a deal to sell the iconic King Island Dairy to a newly formed Australian entity, King Island Dairy 2 Pty Ltd. The landmark transaction, announced on March 7, 2025, encompasses the dairy facility, brand, onsite Cheese Store, and two local farms that will ensure continued milk supply for the operation. This strategic sale, expected to be finalized by mid-year, safeguards 60 local jobs and preserves the production of specialty cheeses that have made King Island a household name among food enthusiasts across Australia.
A Beloved Cheese Legacy Preserved
The sale of King Island Dairy represents a remarkable turnaround for the century-old cheese production facility. Just months ago in September 2024, Saputo Dairy Australia had announced the dairy would close by mid-2025 after failing to find suitable buyers. This closure would have ended a rich tradition of artisanal cheesemaking that has become synonymous with Tasmania’s premium food culture.
Premier Jeremy Rockliff’s commitment to saving this cultural institution proved successful with his declaration that “King Island Dairy wouldn’t close on my watch.” His steadfast position reflected the emotional and economic importance of the dairy to the island community. The reversal of fortune for this beloved institution demonstrates how traditional food craftsmanship can still find commercial viability in today’s market.
The dairy’s renowned brie, cheddar, and Camembert cheeses have developed a devoted following over decades. Their distinct flavors, attributed to King Island’s unique terroir and the dairy’s time-honored production methods, have made them staples in gourmet cheese selections nationwide. As dairy industries globally face challenges, this sale stands as a powerful example of preserving food heritage while adapting to modern market conditions.
I’ve always admired how dairy production innovations can coexist with traditional methods. King Island’s rescue shows how cultural food landmarks can be maintained even during industry transformation. The transaction ensures these celebrated products will continue reaching Australian tables, preserving a piece of the country’s culinary heritage.
Australian Ownership Secures Local Production
The transition to Australian ownership marks a significant shift for King Island Dairy. King Island Dairy 2 Pty Ltd, led by two experienced Australian businessmen with extensive backgrounds in supply chain and manufacturing expertise, will take the reins of this beloved institution. This change addresses concerns about foreign ownership of Australian food production assets while bringing fresh perspectives to the operation.
Gerard Lourey, SDA Director of Operations and Supply Chain, emphasized the care taken in finding the right buyer: “Saputo took great care to find a suitable buyer committed to continuing operations and preserving jobs.” This careful selection process reflects an understanding that the dairy’s success depends on maintaining its authentic connection to place and production methods. The new leadership brings valuable experience that can help navigate the challenges of specialty food production in today’s competitive market.
Current employees have been offered the opportunity to transfer to the new ownership structure, providing valuable continuity for production processes. This continuity is vital for maintaining the distinctive character and quality of King Island’s cheese varieties. The retention of skilled cheesemakers ensures that the artisanal knowledge developed over generations won’t be lost in the transition.
The inclusion of two local farms in the sale guarantees a secured milk supply, addressing one of the most fundamental requirements for cheese production. This integrated approach mirrors trends I’ve observed in sustainable dairy practices where supply chain stability becomes a cornerstone of product quality and business viability.
Community and Government Collaboration
The successful preservation of King Island Dairy demonstrates the power of coordinated action between government and community stakeholders. The Tasmanian Government, led by Premier Jeremy Rockliff, played a pivotal role in facilitating the sale process. Their involvement highlights how food production facilities often serve as economic anchors for regional communities.
Local leadership was equally important, with Braddon Independent MHA Miriam Beswick advocating strongly for the dairy’s continuation. This unified approach created the political will necessary to find a solution when closure seemed inevitable. Premier Rockliff captured the significance of this achievement: “Not only will King Island Dairy remain open and employing locals on the Island for years to come – the dairy and brand will be coming back into Australian hands.”
The community’s passionate support for preserving the dairy reflected its status as both an employer and a cultural touchstone. For many residents, the dairy represents not just jobs but a living connection to the island’s agricultural heritage. This grassroots energy provided crucial momentum during negotiations and demonstrated the social value of food production facilities beyond their economic metrics.
Gerard Lourey acknowledged this collaborative effort, stating: “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.” This recognition of multiple stakeholders reflects the complex ecosystem that supports specialty food production. Local food businesses often participate in dairy competitions that help showcase regional food excellence while building community pride.
Economic Implications Beyond Cheese
The preservation of King Island Dairy carries significant economic implications that extend beyond cheese production. With 60 jobs secured, the dairy continues its role as a major employer for the island community. In small regional economies, the multiplier effect of these positions supports numerous additional jobs and businesses throughout the area.
Tourism represents another economic dimension of the dairy’s operation. The onsite Cheese Store attracts visitors who often extend their stays to explore other local attractions. This food tourism element creates restaurant, accommodation, and retail opportunities that benefit the broader King Island economy. The dairy effectively functions as a destination anchor that draws visitors to the region.
Supply chain relationships with local farmers and service providers create additional economic stability. These business-to-business connections support agricultural sustainability and help maintain working landscapes that define the island’s character. The dairy’s continued operation preserves a market for local milk production, supporting the broader agricultural ecosystem that makes specialty cheese possible.
While traditional dairy faces competition from alternative dairy products, specialty cheese operations like King Island maintain distinct advantages through their place-based identity and established reputations. Their continued viability demonstrates market space for both traditional and innovative approaches to dairy products.
The Future of Specialty Cheese Under New Ownership
Looking forward, the new ownership structure presents opportunities to build on King Island Dairy’s established legacy. The combination of experienced leadership with the dairy’s heritage creates potential for both tradition and innovation. This balance will be essential as consumer preferences continue evolving in the specialty food market.
Distribution represents one area where the new ownership may bring valuable expertise. Expanding market reach while maintaining production quality requires sophisticated supply chain management – precisely the expertise the new owners bring. Their background could help King Island cheeses reach new markets while preserving the authenticity that consumers value.
Product development presents another avenue for growth. While maintaining their flagship varieties, the dairy might explore new cheese styles or aging processes that complement their existing offerings. This kind of measured innovation respects tradition while keeping pace with evolving consumer interests in specialty foods.
The dairy might also benefit from the growing interest in food provenance and production stories. Modern consumers increasingly want to understand the origins of their food, creating marketing opportunities for producers with authentic heritage and transparent practices. Those interested in how traditional foods adapt to modern markets might find sustainable food innovations particularly relevant to this case.
Preserving Culinary Heritage Through Business Innovation
The successful transition of King Island Dairy to new ownership provides valuable lessons for preserving culinary heritage. By recognizing the cultural value of food production alongside its commercial aspects, stakeholders created a solution that maintains both. This balanced approach addresses economic realities while preserving food traditions that connect communities to their agricultural history.
The dairy’s continued operation ensures that the distinctive brie, cheddar, and Camembert cheeses will remain available to Australian consumers. As Gerard Lourey noted: “The importance of preserving the manufacturing operations and specialty cheese products cannot be overstated.” This recognition of food products as cultural assets reflects a deeper understanding of food’s role in regional identity.
The inclusion of the onsite Cheese Store in the sale acknowledges the importance of direct consumer connections. These direct retail experiences create loyal customers while educating visitors about the craft behind specialty cheese production. Such food education components help build consumer appreciation for traditional food craftsmanship that justifies premium pricing.
For food enthusiasts and industry observers, King Island Dairy’s story demonstrates that traditional food producers can find viable paths forward even amid industry consolidation. Their continued operation represents a victory for food diversity in an era of standardization. I’m excited to see how this iconic producer evolves under Australian ownership while maintaining its distinctive contribution to the country’s food landscape. You can submit a dessert recipe inspired by King Island’s cheeses to be featured on our site.