King Island Dairy Changes Hands in Major Business Deal

Local cheese producer secures new ownership after extended market search

By FoodPEEPS News | September 3, 2025

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The famous King Island Dairy has found new ownership after spending over twelve months searching for a buyer, ending uncertainty about the facility's future operations.

Saputo, the Canadian corporation that previously owned the business, has finalized a purchase agreement with King Island Dairy 2 Pty Ltd, a recently established Australian company.

New Leadership Takes Control

The purchasing organization is headed by two Australian business professionals with extensive experience in manufacturing and supply chain operations. Company records indicate that Nicholas Dobromilsky and Graeme Wilson, both from Melbourne, serve as directors of the new entity, which was officially registered earlier this month.

The transaction encompasses the complete dairy operation, including production facilities, brand rights, the retail cheese shop, and two nearby farms that supply milk to the operation.

Employment Security Maintained

Current workers at the facility have been assured that their positions will continue under the new management structure. All existing employees are being offered the opportunity to transfer to the new ownership group.

Community Relief and Government Response

Local government officials expressed significant relief at the successful sale. King Island's mayor emphasized the importance of returning the business to Australian control after a quarter-century of foreign ownership.

The mayor praised the workforce for maintaining operations and demonstrating commitment during the uncertain period, noting that their dedication helped showcase the company's value to potential purchasers.

Background of the Sale

The ownership transition follows Saputo's announcement last September that it intended to shut down operations if no buyer emerged. This prospect created considerable anxiety in the local community, where the dairy serves as the primary employer.

Tasmania's state leadership had criticized the Canadian company's approach and committed to finding alternative ownership to preserve the operation and protect local jobs.

Looking Forward

The new owners are expected to make public statements about their plans for the business in the coming days. Local officials anticipate that fresh ownership will bring renewed investment and innovation to revitalize both the brand and facilities.

The successful transaction preserves a significant piece of Tasmania's agricultural heritage while maintaining employment for the island community that depends on the dairy's continued operation.