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Tasmanian government threatens foreign owner with nationalisation to save iconic dairy brand

King Island Dairy news
Image – King Island Dairy.

The Tasmanian government has issued a stern warning to Canadian dairy giant Saputo, accusing the company of prioritising market dominance over the survival of the iconic 120-year-old King Island Dairy.

The brand, known for its premium brie, camembert, and cheddar cheeses, is the largest employer on the remote island with just 1,600 residents.

Saputo acquired the brand in 2019 and announced plans to shutter its operations by mid-2025, citing changing market conditions and lack of a viable buyer.

Tasmanian Premier Jeremy Rockliff has called out the company for not doing enough to sell the business and hinted at potential nationalisation to safeguard local jobs and preserve the brand’s legacy.

Premier Rockliff and Senator Jacqui Lambie have both criticised Saputo’s handling of the situation, suggesting the company may be seeking to eliminate a competitor to benefit its other Australian brands like South Cape and Tasmanian Heritage.

The government has sought legal advice on taking control of the operation temporarily to restart the sale process, ensuring a committed buyer can revive the brand.

The threat appears to have prompted Saputo to reopen negotiations with prospective buyers, raising hopes that King Island Dairy’s storied history and its vital role in the local economy can be preserved.

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3 COMMENTS

  1. Saputo Inc. is a public company that produces and sells dairy products worldwide. It was founded in 1954 by the Saputo family in Montreal and has grown through acquisitions in Canada, the US, Argentina, Australia and the UK.
    Blackrock and Vanguard between them own about ten percent of the shares.
    Saputo bought Tasmanian King Island Dairy in 2019 and six years later wants to close the whole business down.
    Rockliff wants to make good his threat to nationalise. Clean the mongrels out.

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