Govt confidence ahead of June 30 Dairy closure deadline

The Tasmanian Government remains confident of a positive outcome for King Island Dairy ahead of the June 30 closure deadline.

While the company has been tight-lipped about any potential sale, speculation persists about whether a buyer will emerge or if an alternative arrangement will be made.

A State Government spokesperson confirmed that the sale process for the facility is ongoing, stating, “Whilst the end of the production season for Saputo at the King Island Dairy remains firm for 30 June, the Government is confident an outcome for the facility and its workers will be known sooner.”

Internationally, Saputo’s leadership remains focused on reassessing its global operations. In February, the company reiterated that it is "evaluating all aspects of the business," while CEO Carl Colizza acknowledged continued market instability.

Saputo has recently shut down or consolidated operations in the UK, including plans to close its Kirkby Malzeard plant in North Yorkshire, home to the Wensleydale cheese brand.

Despite financial challenges, Saputo reported a C$1.19 billion EBITDA for the nine months to December 31, up 5.3% year-on-year, though it posted a net loss of C$518 million in the third quarter. 

For now, the fate of King Island Dairy and its workforce remains in limbo, as Saputo’s sale efforts continue behind closed doors.