South Australian dairy Beston Global Food Company goes into voluntary administration

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SA Dairy,Beston Dairy,Beston Global Food Company

About 22 farmers and 159 workers at the company's Jervois and Murray Bridge sites will be affected by the development.

Most of the 22 dairy farmers who have been awaiting payment for the past two months have been assured by administrators they will still be paid.A perfect storm of adverse events has seen South Australian dairy company Beston Global Food Company go into voluntary administration.

Financial services company KPMG has started the voluntary administration process and taken control of the business's assets, trading and day-to-day operations. Megamilk Snow Brands, a Japanese company, had made an offer to buy the cheese and lactoferrin production facility at Jervois in South Australia's Lower Murray region, however the sale did not eventuate."The Megamilk offer would have enabled all of the jobs at Jervois to be preserved and would have led to an increase in demand for milk for processing at the Jervois factory over time," he said.

South Australian Dairyfarmers' Association president Rob Brokenshire said it would be business as usual for the 22 dairy farmers directly affected."Most of those haven't had complete payments … over the last two months so SADA are very concerned for that," Mr Brokenshire said.

 

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