Golden North Ice Cream set to move from Laura to Murray Bridge
The operation will relocate to Murray Bridge, a little more than three hours away in the state's south-east.
Managing director Dimi Kyriazis said there were few dairy farmers left in the mid-north and that the company had chosen to move closer to its milk suppliers.
"If you go back long enough in time, there used to be more than 90 dairy farmers In the mid-north, now there are about 13," he said.
"Everything that we make has an additional 500 kilometres added to it because we will bring ingredients in — milk, cream, packaging.
"It needs the 260-kilometre trip out to Laura and then you turn it into goods, then it needs a 260-kilometre trip back."
Mr Kyriazis said the company was partly a victim of its own success because it had maximised the output from the Laura site.
"We've grown a hell of a lot and to keep growing … the level of funds that would need to expand that factory — you're just not going to get the return on it," he said.
The company will set up its operation at the former site of the Beston Global Food Company.
"We're turning the cheese factory into an ice cream factory," Mr Kyriazis said.
"Saying that, all the cheese equipment is still there, so it's going to also give us an opportunity to branch the brand out into new categories that we haven't traditionally been in."
The company has about 80 employees and independent Member for Stuart Geoff Brock said the move was disappointing but had "been in the wind for a while".
"My main concern is for the staff that are there, been there for a long time," he said.
"I know that this is an economic decision they have to make, but that doesn't make it any easier for myself or for the the 80 to 90 people that are at the peak of their production.
"It's always been an iconic name, Golden North … or Laura, the home of Golden North."
Golden North Ice Cream has been producing in Laura since 1923.
To help support Laura residents the state government will provide a $1-million community infrastructure program during the 12-month transition.
The program will be used to support infrastructure projects to attract new residents and businesses to the town.
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