Ashgrove's everyday cheddar range, launched on Thursday, will be the first locally-produced everyday cheese since Fonterra halted production of its Table Cape cheese in 2013.

Ashgrove chief executive Richard Bennett said giving Tasmanians the option to choose local was the driving force behind the new product.

"Unlike our premium cheeses which are available nationally, the everyday cheddar will only be available for purchase in the state," Mr Bennett said.

"While this cheese has been in the pipeline since before COVID, the pandemic has certainly highlighted the need for places like Tasmania to be self-sufficient and it's great to be able to add to this by offering a locally-produced staple item.

"It's also been wonderful to see the desire of Tasmanians to support locally-made products and local businesses throughout this difficult period and we hope our everyday cheddar helps people feel good about their purchase."

Mr Bennett said the new range had been made possible by a $2 million investment in staff and equipment over recent years.

"We invested in a cheese production factory in 2017 and a new packing facility last year," he said.

"Before this investment we had one 6000 litre cheese vat. Now we are running two 17,000 litre vats.

"From what started as a small family business in 1983, we now employ over 100 Tasmanians across our farms and factory."