The potential sell-off of the only dairy processing plant on King Island comes as a little surprise to locals.
But that hasn’t stopped concern rippling in the wake of yet another period of uncertainty for one of the biggest employers on the tiny island off Tasmania’s north-west.
Canadian dairy giant Saputo, responsible for brands like Devondale, Mersey Valley, Cracker Barrel and King Island Dairy, announced on Wednesday it was considering offloading its King Island business as part of an effort to trim the cost of running its Australian network.
The 120-year-old dairy’s iconic, award-winning range of cheeses have been popular across Australia since the 1980s, riding the booms and busts of multiple owners.
The latest possible sale comes amid a shrinking national milk supply, as well as Saputo’s plans to invest $27 million in its remaining sites across Tasmania and Victoria.
In the meantime, Saputo international president and chief operating officer Leanne Cutt stressed the company intended to “keep its King Island Dairy operations running at regular capacity”.
Saputo did not respond to a request for comment.
The news may have churned uncertainty among the island’s population, but it’s just the latest hurdle in an already dwindling industry.
Dairy farms dwindle from nearly 30 to four
When Kelly and Philip Lancaster got married and started working on their dairy farm on King Island’s east coast 27 years ago, there were nearly 30 dairy farms sprinkled across King Island.
They’re down to just four, and two of those are owned by Saputo.
“We’re one of only two family farms left,” Mrs Lancaster said.
“It’s sad,” Mr Lancaster, a third-generation dairy farmer, added.
“When I came back to the farm after going away to school and working in Melbourne … the dairy industry was thriving.
“We’re not particularly surprised [about the sale], just because of the way everything’s been going over the last few years.”
With no children interested in taking on their operation, no clear answers on what will happen to the dairy facility, and a fully functional farm with cows and calves to keep in order, the Lancasters have been left treading water when it comes to the future.
“There’s a few options but I guess we’ll just wait and see what comes for now,” Mr Lancaster said.
Dairy’s slow defeat
Gary Strickland retired from dairy on King Island about five years ago after 45 years of early rises and hard work.
He remembers the glory days of the cheese factory, when the place was processing 30 million litres of milk supplied by tens of farms.
“No new dairy farms have started here for at least … since 1996,” he said.
Mr Strickland said a series of owners had gradually cut demand for milk down to “unviable” levels, as well as removing product lines like certain cheeses and yoghurt.
Fellow former King Island dairy farmer Troy Smith agreed with Mr Strickland.
“It’s a pity that we’re in this constant situation of flux because … it’s a perfect place for dairying,” he added.
“For the community on King Island, it would be devastating to lose the factory.”
Mr Strickland said the factory was one of the biggest employers, propping up about 100 jobs on an island of just 1,500 people.
“The government and the island and the council and everyone’s got to do as much as they can to try and find another buyer,” he said.
Fresh hopes for a ‘legendary’ brand
King Island mayor Marcus Blackie said his hopes were high for the facility, providing the sale included the branding and cheese recipes.
“My fervent hope is that the company as we know it … can be sold as a going concern to someone else who can overcome these current challenges, who can see the potential for the brand in the future because all Australians love it,” he said.
“There aren’t too many people in Australia who I can’t bribe with a good piece of King Island Dairy cheese.”
He said attempts to move the brand to Burnie or elsewhere would not do.
“Real King Island cheese is made with the superb milk from cows here on King Island that eat our incredible grass … I would argue it wouldn’t be the same,” he said.
Tasmania’s Primary Industries Minister Jo Palmer told the Legislative Council the State Growth Department had been in discussions with Saputo for some time about a review into its King Island operations.
“We continue to work closely as a government with Saputo as they progress their review … around the challenges faced by the King Island dairy operation, especially given the age of the facility and its remote location,” Ms Palmer said.
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