KING Island Dairy owners Saputo Dairy Division (Australia) has not set a timeline for the future of the island’s iconic cheese factory.
The company recently revealed its plan to launch a strategic review of King Island Dairy with an option of selling the business.
The community is anxious, and questions are being asked about the timelines for decisions.
The Courier asked SDA for clarification around timeline deliverables.
The company was asked for timelines for the review completion; if a sale of King Island Dairy proceeds, the sale/buyer cycle timeline, and finally if a buyer is not found during the on-the-market sale period, what will the company then do?
A Saputo spokesperson restated that the SDA “timeline is flexible.”
“SDA is liaising directly with its valued employees, suppliers and other stakeholders about the strategic review, which is considering a range of strategic, commercial and financial alternatives,” the company said.
“While it is not appropriate to speculate or pre-empt the outcome of the review process, SDA recognises the potential impact any decision may have on the King Island community, especially its employees and dairy farmers, and is committed to thoughtfully considering all possible scenarios before any decisions are made.
“As King Island Dairy’s historic roots are deeply embedded in the region, we hope to find a buyer to ensure the continued success of its renowned specialty cheese products.”
The review is part of Saputo’s strategy to cut operational expenses in its Australian network.
In February 2023 when President and CEO Lino Saputo Jnr presented the third quarter results to 31 December, he said: “The operating environment remains dynamic…”
Mr Saputo said then that the company had moved the focus to value over volume after a challenging couple of years characterised by supply chain and inflationary pressures.