Rockliff: I delivered on my KI Dairy pledge

Premier Jeremy Rockliff says he has delivered on his pledge that King Island Dairy wouldn't close on his watch.

Mr Rockliff first made the the bold pledge when speaking to the King Island Courier in February last year.

"Almost a year ago to the day, I said that King Island Dairy would not close on my watch", Mr Rockliff said.

"Following an enormous effort from many to secure a buyer, I’m proud to say that the King Island Dairy has a bright future ahead.

"I will always fight for the best interests of Tasmania and when it was clear that Saputo was willing to walk away and close the dairy, we knew it was on our Government to save the dairy. 

"Not only will King Island Dairy remain open and continue employing locals on the Island for years to come - the Dairy and brand will be coming back into Australian hands. 

"This is a big win for all King Islanders, and Tasmanians. 

"I look forward to joining the new buyers in the coming days and hearing their plans for the future of King Island Dairy."

Today's announcement was welcomed by the State Labor Opposition.

"This is great news for the dairy workers, their families, farmers, and the wider community. We welcome the assurance workers will keep their jobs under new ownership and extend our support to workers as they transition to new ownership", Deputy Leader and Labor Member for Braddon Anita Dow said.

"Congratulations to the King Island Council, community, and workforce on their strong advocacy which highlighted the importance of the dairy to the King Island community and our local economy.

"We strongly encourage everyone to get behind the King Island Dairy brand and celebrate with some King Island cheese and continue supporting this Tasmanian institution."

EARIER: King Island Dairy has been sold by Saputo to King Island Dairy 2 Pty Ltd as a going concern.

Saputo announced today it has entered into a binding agreement to sell its King Island Dairy business. 

According to Saputo, King Island Dairy 2 Pty Ltd is led by two experienced Australian businessmen with supply chain and manufacturing expertise.

They said that as part of the agreement, impacted employees will receive an offer to transfer their employment to the new owner to help support the future of King Island Dairy and its renowned specialty cheese products.

King Island Mayor Marcus Blackie rejoiced at the news.

“As Mayor I know I speak on behalf of all King Islanders when I say Blessed are the Cheesemakers! We can all rejoice in this remarkable comeback victory!", Mr Blackie said.

"I sincerely congratulate the new Australian owners [King Island Dairy 2 Pty. Ltd.], we look forward to meeting them very soon, then a long and fruitful partnership working together, their success will ultimately be our success. 

"I also thank the Premier of Tasmania, State Coordinator Generals Department as well as others who have staunchly supported and contributed to this incredible outcome at Government level."

Most didn’t think we could do it but King Island as the underdog has again shown Australia what can be achieved by a courageous small country community. King Island is the little Island that can, well done team!”

Gerard Lourey, SDA Director of Operations and Supply Chain, said that while the pathway to achieving a sale has not been straightforward, Saputo took great care to find a suitable buyer that we believe is committed to continuing the manufacturing operations and preserving jobs on King Island.

“We are very pleased to have reached a sale agreement for the buyer to purchase the King Island Dairy facility and brand, the onsite Cheese Store and two local farms that provide a guaranteed milk supply.

“We deeply appreciate the ongoing support of our dedicated King Island employees, suppliers, customers, the local council and the Tasmanian Government during this challenging period for King Island Dairy. We thank them for their patience, resilience and collaboration.

“While King Island Dairy will not be part of our portfolio moving forward, SDA remains committed to further growing the value of our domestic and premium export products as part of our long-term vision for success in Australia,” he said.

All impacted employees have been advised of the sale, with the sale transaction expected to be completed by mid-year. SDA will work closely with the site team and provide all necessary support to ensure a successful transition to the new owner.