More Than 150 Workers to Lose Jobs as Beston Global Food Fails to Secure Buyer
Source: DairyNews.today
South Australian dairy producer Beston Global Food Company will cease operations, leaving 159 workers and 22 dairy farmers without certainty, after administrators from KPMG failed to find a buyer for the struggling business.
Milk production is set to end on December 6, and infrastructure at the company’s Jervois and Murray Bridge facilities will be auctioned off. The closure comes after months of uncertainty following the company’s voluntary administration in September.
Unpaid Farmers and Unresolved Debt
The decision has left 41 farmers unpaid for milk supplied before the administration, with outstanding payments exceeding $10 million. Beston Global had purchased 160 million liters of milk from South Australian farmers during the 2023-24 fiscal year, valued at approximately $120 million. This supply will now need to be redirected to other buyers.
Failed Sales Process
KPMG had sought to sell the business as a going concern and received interest from multiple parties. However, ongoing trading losses made it impossible to extend operations past November 30.
“While additional time was granted for parties to finalize their offers, no binding proposals were received within the required timeframe,” KPMG stated. “Administrators have been left with no alternative but to wind down the business and initiate an orderly sale of its assets.”
The closure marks another significant challenge for South Australia’s dairy sector, as efforts to keep the facilities operational have failed, leaving workers and farmers searching for alternatives in an already strained industry.
Unpaid Farmers and Unresolved Debt
The decision has left 41 farmers unpaid for milk supplied before the administration, with outstanding payments exceeding $10 million. Beston Global had purchased 160 million liters of milk from South Australian farmers during the 2023-24 fiscal year, valued at approximately $120 million. This supply will now need to be redirected to other buyers.
Failed Sales Process
KPMG had sought to sell the business as a going concern and received interest from multiple parties. However, ongoing trading losses made it impossible to extend operations past November 30.
“While additional time was granted for parties to finalize their offers, no binding proposals were received within the required timeframe,” KPMG stated. “Administrators have been left with no alternative but to wind down the business and initiate an orderly sale of its assets.”
The closure marks another significant challenge for South Australia’s dairy sector, as efforts to keep the facilities operational have failed, leaving workers and farmers searching for alternatives in an already strained industry.
