Century-old Tasmanian cheesemaker King Island Dairy saved by last-minute buyer

Century-old Tasmanian cheesemaker King Island Dairy has been given a lifeline by an 11th-hour buyer.

The company, which operates from King Island in the Bass Strait, was due to close mid this year after current owner Saputo Dairy Australia announced in September it had been unable to find a buyer.

But SDA on Friday said it had now entered into a binding agreement to sell the cheese business to a newly-formed entity called King Island Dairy 2 Pty Ltd.

The rescue deal will save around 60 jobs and the production facilities on King Island.

SDA — which is also behind the CHEER and Devondale brands — did not name those involved in the new entity but said it was being “led by two experienced Australian businessmen with supply chain and manufacturing expertise”.

It also offered assurances to current staff, saying they would be offered to transfer their employment to the new owner.

SDA director of operations and supply chain Gerard Lourey said while the pathway to achieving the sale had not been straightforward, the company took great care to find a suitable buyer it believed 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.”

King Island Dairy’s cheese products — ranging from brie, cheddar and Camembert — is stocked in the major supermarkets.