It was founded in 1825 and received a royal charter the same year,[1][2] and was granted 250,000 acres[3] (1,000 km2) in northwest Van Diemen's Land (now Tasmania) in 1826.

The company was a group of London merchants who planned a wool growing venture to supply the needs of the British textile industry.

[4] In the 19th century, British businessmen were interested in developing colonial resources in Australia to ensure a cheap supply of wool to fuel the growing textile factories in Britain.

[4] The Van Diemen's Land Company introduced bounties on the thylacine (Tasmanian tiger) from as early as 1830, which was a partial cause of their extinction.

[14] In February 2024, Van Dairy lost a major milk contract with Fonterra, resulting in the reduction of its herd of cows by at least 700, and possibly thousands.