Major Tasmanian food company collapses, 160 jobs at risk - News + Articles

Mar 16, 2026

Another major player in Tasmania's premium food sector is officially fighting for its life.

Tasmanian-based agrifoods business TasFoods has entered voluntary administration, putting 160 jobs at risk and leaving farmers out of pocket.

TasFoods was established in 2015, and previously held an impressive portfolio of brands, including Nichols Poultry, Pyengana Dairy, Betta Milk, Meander Valley Dairy and Shima Wasabi. However, the company has spent the last few years offloading its assets to stay afloat. The company sold Betta Milk and Meander Valley Dairy to Bega Cheese in late 2023, and also sold off Shima Wasabi to Hillwood Berries in 2023. It then sold Pyengana Dairy late last year.

TasFoods’ recent financial struggles

With its dairy brands gone, Nichols Poultry became TasFoods’ core business, a premium brand providing air-chilled and chlorine-free chickens to the Tasmanian market. It also contributes to the company’s pet food brand, Isle & Sky. But last year, the business reported huge financial losses, citing an oversupply of poultry and heavy discounting across wholesale channels, along with increasing operational overheads. The decision was made to call in administrators after the company was unable to find a buyer for Nichols Poultry.

Locals left in limbo

For now, TasFoods will continue to operate, and staff will remain employed while administrators review the options available, whether that be recapitalisation, or sale of the business. But local chicken farmers have been left questioning their future.

One local chicken farmer, Paul Campbell, told the ABC he is currently owed $70,000 by TasFoods, and as he is still working under a contract with the business, he is expected to deliver more chickens later this month.

This isn’t the first time a Tassie business has faced closure. In late 2024, beloved cheese brand King Island dairy announced its imminent closure due to declining sales. Then owner, Saputo Dairy Australia decided to shutter the historic cheese label after being unable to find a buyer. However, the brand was saved at the last minute by a pair of Australian businessmen. Will TasFoods also find its own hero to save the day?