Elgaar Farm at Moltema in the Meander Valley stopped producing milk, cheese and yoghurt in July last year after a routine inspection by the Tasmanian Dairy Industry Authority (TDIA).

The regulatory body identified a number of issues with the factory, which uses traditional European production methods, the farm’s owner Joe Gretschmann said.

The factory’s pasteuriser failed to meet recently upgraded industry standards, but Mr Gretschamann believed there was never a risk to public health.

He said he believed his business was the victim of a “severe bureaucratic issue”.

Several weeks ago Elgaar launched an online fundraising drive to upgrade its factory, with the aim of reopening by the end of August.

Consumers have so far donated $165,000 of the $250,000 the owners say they need by the end of this month.

The reopening would still need the approval of the TDIA.

In a statement the TDIA said it had met with representatives from Elgaar and they were aware of what they needed to do to meet standards.

“Operators that meet these requirements are then able to be licensed,” is said.

“At this stage, Elgaar or its representatives do not have a new licence application before the authority for consideration.

“If they do apply, the application will be assessed in line with the standard procedures.”

Primary Industries Minister Jeremy Rockliff said the regulations were necessary to protect the state’s brand.

“Food safety is critical to protecting the health of Tasmanians and maintaining confidence in our dairy products,” he said.