Government considers purchasing King Island Dairy

THE State Government has sought legal advice on a “range of options” including the temporary purchase of King Island Dairy. 

“All options are on the table to ensure the best outcome for the King Island community and to support the continuation of King Island Dairy operations,” Premier Jeremy Rockliff said. 

As the country closed for the public holidays, the Courier reported that the State Government was considering legislation to temporarily nationalise King Island Dairy, or force Saputo to sell it to a private buyer.

This week the Courier asked the Premier if he planned to introduce special legislation to force Saputo to make a fair sale of its assets and whether the State Government would take ownership of King Island Dairy. 

“I’m pleased that Saputo has listened to our concerns and re-engaged other interested parties, as is the commonsense thing to do,” Mr Rockliff said. 

“The Government has brought several interested parties to the table to secure a new owner who values the brand’s legacy and importance to Tasmania. 

“We will continue to work with Saputo to ensure this."

“The Tasmanian Government has provided targeted support to attract potential buyers and facilitate discussions with parties who understand the unique heritage of King Island Dairy. 

“The priority remains to secure a buyer who will be committed to on-island production and support local jobs,” he said. 

At the close of 2024, the Tasmanian Government called on Saputo to secure the future of the iconic dairy and its brand. 

While Saputo has publicly stated its intent to sell the business, government concerns were mounting about the company’s foreign head quarters’ commitment to finding a suitable buyer. 

Mr Rockliff issued a strong warning to Saputo. 

“We do not call out this behaviour lightly, but we will not stand idly by while a global company welshes on its responsibility to work with the Government for the benefit of Tasmania.”