Premier ‘quietly confident’ on King Island Dairy sale

Premier Jeremy Rockliff has reaffirmed the state government’s commitment to securing a buyer for King Island Dairy, stating he is “quietly confident” that the business will be sold to an owner committed to its long-term viability.

“Our objective is to have King Island Dairy sold to a purchaser that believes in the island, its people, and the business,” Mr Rockliff said.

He acknowledged his past criticisms of Saputo’s handling of the sale process, particularly concerns about a lack of transparency and engagement with local stakeholders. However, he noted that the company had since adjusted its approach.

“They have come to the table and broadened the expressions of interest, which is what we called for,” he said. “While I remain cautiously optimistic, we have to be realistic—these things take time, and there are no guarantees. 

Speaking during his visit to the island yesterday, the Premier confirmed that the King Island Response Team (KIRT) had convened that morning, bringing together representatives from local government, state and federal agencies, and key community leaders, including Citizen of the Year Sally Haneveer. 

The meeting focused on efforts to safeguard the future of the island’s dairy industry following Saputo’s decision to sell the facility.

Asked whether the government would consider stepping in and taking ownership of the dairy if a buyer is not secured, the Premier stepped away from the idea, contradicting the concept of temporary government ownership he proposed earlier this year.

“Governments aren’t good at running dairies,” he said bluntly. 

“But what we can do—and will do—is everything possible to ensure there is a production facility on the island that continues to create high-quality, branded products that King Island is famous for.”

“I am confident there is serious interest in keeping this operation running,” he said.

Despite the Premier’s optimism, King Island Dairy workers remain in a state of uncertainty, with no concrete updates since Saputo first announced its intention to sell the business in November 2023.

When asked why employees had not been given more frequent updates, the Premier defended the government’s approach, stating that communication was being handled in a targeted and strategic manner.

“We’ll do it our way,” he said, pushing back against criticism that workers had been left in the dark. 

“We are committed to ensuring that workers get direct updates after every King Island Response Team meeting, and we are working closely with all stakeholders to keep them informed.”

However, some employees expressed frustration, saying that while they appreciated the government’s assurances, they still had no clear sense of their job security or the timeline for a potential sale other than a June closure.

During his visit, the Premier met with dairy workers to hear their concerns firsthand. 

“I understand that people are anxious. They have families to support, mortgages to pay, and life decisions to make,” he said. 

“No one wants to see the dairy shut down. It’s too important to the economy, to jobs, and to the identity of King Island.”

With the economic future of the island’s dairy sector hanging in the balance, some community leaders have suggested that Saputo should be held financially accountable for the impact of its withdrawal. However, the Premier confirmed there had been no discussions about an exit fund or corporate reparations.

“Our focus is on securing a buyer and ensuring a smooth transition,” he said. “Right now, it’s about protecting jobs, safeguarding the industry, and making sure King Island Dairy continues to operate for generations to come.”