‘Devastating’: Locals claim King Island Dairy closure could impact entire island and parts of Tasmania

Locals have warned the shock closure of an iconic Australian cheese brand could have major impacts on the community. Tasmania’s King Island Dairy will no longer operate from mid-2025, parent company Saputo revealed on Thursday. The dairy giant launched a strategic review of the facility 10 months ago, making the decision to retire the brand after it was unable to find a buyer. About 58 jobs are tipped to be affected in the closure, however locals have warned the decision could be “devastating” for both King Island, which has a population of about 1600, and parts of Tasmania. Local farmer David Munday told the ABC the move could drive younger people to leave the island in search of new work “They lose their jobs: We lose population with the island. That’s where it becomes devastating,” Mr Munday told the ABC. Local John Smith said “everything” would be affected. “I could see it affecting the whole island’s schools … it’s going to have a knock-on effect to the football, the netball … it’s going to really knock the island around,” Mr Smith said. Mr Smith said following the closure of the island’s abattoir it took about four years to recover, with this latest closure being “another kick in the rear”. Saputo Dairy Australia president Leanne Cutts said the decision to close the brand “had not been taken lightly”. “After thoroughly reviewing every possible option, closure of the facility was determined as the most viable way to strengthen SDA’s competitiveness based on changing industry and market conditions,” Ms Cutts said. “As King Island Dairy’s historic roots are deeply embedded in the region, it was hoped the strategic review would identify a potential buyer for the facility.”