Businesses and local industry
As Lilydale grew, so did its local businesses and industries. From general stores and blacksmiths to orchards and timber mills, the town became a hub of commerce, supporting both residents and neighbouring settlements.
The rise of general stores and shops
Lilydale’s first businesses emerged in the late 19th century, serving settlers, farmers, and travellers.
Key Early Businesses
- Bardenhagen’s Store (1888)
- Opened by Ludwig Bardenhagen, selling supplies to miners and farmers.
- Included a butter and cheese factory.
- The first public building in Lilydale not made from timber, with bricks sourced from Rocky Creek.
- Still operating as a supermarket, now Wragg’s IGA.
- Mitchell’s Store (1910) – A general store on Main Road.
- Dolbey’s Grocery – Now the Lilydale takeaway shop.
- Dornauf’s General Store – The current Lilydale Pharmacy.
- Procter’s Blacksmith Shop – Located on the corner of Main Road and Doaks Road, now the service station.
The timber industry: sawmills and exports
Dating back to the 1850s, timber was one of the Lilydale district’s largest industries.
- William Tyson and William Dawson Grubb established Northern Tasmania’s first power-driven sawmill in Underwood.
- Sawmills provided jobs for the community and continued operating through most of the 20th century.
- Timber from Mt Arthur was shipped across Tasmania, fueling construction and infrastructure projects.
Agriculture and orchards
By the early 20th century, orcharding became a major industry, with apples and pears dominating Lilydale’s farmland.
- In 1919, a cool store and packing shed was built on Station Road, capable of handling 150,000 cases of fruit.
- A sawmill powered the cool storage plant, helping preserve apples for export.
- Apples were shipped to England, but after Britain joined the European Market in the 1970s, Tasmania’s apple industry declined, forcing many farmers to remove their orchards.
- In 1956, Jean Francois and Cecile Miguet planted Lilydale’s first grapevines at Providence Vineyard on Lalla Road, marking the beginning of local winemaking. The vines planted in 1956 remain to this day, making it the birthplace of the modern Tasmanian wine industry and the oldest vineyard in the state. Providence hosts the oldest Chardonnay vines in Australia and the original Pinot Noir and Riesling vines are the oldest in Tasmania.
Bakeries, butchers and local food businesses
At one time, Lilydale had three bakeries, as well as tea rooms and a coffee palace.
Notable food businesses
- Bardenhagen’s Bakery (Station Road) – A private residence today, which still houses its original wood-fired oven.
- Franklin’s Milk Bar – Located near the swimming pool.
- W.M. Dornauf’s Butcher Shop – Served fresh meats to the growing town.
