You can do this by converting the characters in raw dump file directly.
iconv -f 8859_1 -t UTF-8 backup.db.psql > backup.db.psql.utf8
Then convert the line in backup.db.psql.utf8 from:
SET client_encoding = 'SQL_ASCII';
to:
SET client_encoding = 'UTF8';
View this message in context: Re: How to restore a SQL-ASCII encoded database to a new UTF-8 db?
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