In short:
The 159 workers and 22 dairy farmers have been in limbo since the company went into voluntary administration in September.
41 farmers who are owed more than $10 million for milk supplied pre-administration will not be paid for their milk.
What’s next?
Milk production will end on December 6 and the infrastructure at Jervois and Murray Bridge will be auctioned off.
Dairy workers at South Australia’s Beston Global Food company have learnt they will lose their jobs after the company’s administrator, KPMG, was unable to find a buyer.
The 159 workers and 22 dairy farmers have been in limbo since the company went into voluntary administration on September 20.
Milk production will end on December 6 and the infrastructure at Jervois and Murray Bridge will be auctioned off.
KPMG tried to sell the business as an ongoing concern and several companies expressed interest.
The Beston Global Food Company has facilities at Jervois and Murray Bridge. (ABC News: Carl Saville)
However, in a statement a KMPG spokesperson said due to significant trading losses being incurred on a weekly basis the administrators were not able to fund the business beyond November 30.
“While the administrators provided certain parties with additional time to finalise the terms of their respective offers, these parties have been unable to put forward a binding offer for a going concern sale,” the statement said.
“Ultimately, the sales process has failed to secure a buyer in the time frame required given the trading losses being incurred.
“The administrators have been left with no alternative but to wind down the business and begin an orderly sale of its assets.”
Industry had been hopeful a buyer would be found. ( ABC News: Jennifer Nichols )
The winding up of Beston Global Food Company has been met with disappointment by the South Australian Dairyfarmers’ Association (SADA).
SADA president Rob Brokenshire said the industry had been hopeful a buyer would be found.
“The demise of Bestons comes as a blow to us all,” Mr Brokenshire said.
“However, the South Australian dairy farmer is nothing if not resilient and SADA will find other mechanisms to assist their members in protecting their interests into the future.”
Mr Brokenshire said this will mean that 41 farmers who are owed more than $10 million for milk supplied pre-administration will not be paid for their milk.
In 2023-24, Bestons bought 160 million litres of milk from SA dairy farmers worth about $120 million.
That milk will now have to find another home.
A second meeting of creditors is expected to be convened in late January or early February 2025.
At this second creditors meeting, they will decide if the company is placed into liquidation or whether a Deed of Company Arrangement can be accepted should one be proposed between now and that meeting.
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇺🇸 eDairy News INGLÊS: https://whatsapp.com/channel/0029VaKsjzGDTkJyIN6hcP1K
