Limestone Coast dairy farmers impacted by the collapse of Beston Global Food will receive financial support through a State Government assistance program.
The $3m support scheme will be administered by the SA Dairyfarmers’ Association, with the support of SAFA, to help SA farmers left out of pocket re-establish themselves and grow.
The grants will be available to dairy farmers listed as creditors in the Beston liquidation process, to enable them to invest in farm modifications, pay invoices or accounts or reduce working capital debt facilities.
The grants will not exceed the amount lost as a result of Beston going into administration, and applicants would be required to submit a plan for how they intend to utilise the funding to grow their business.
The SA Dairyfarmers’ Association, within the agreed guidelines, will determine the best way to distribute grants based on each business’ requirements.
Beston went into administration in September last year and by November the administrator KPMG announced it no longer had the funding to continue operations.
Milk production ceased on December 6 and after a creditors meeting on February 21 Beston was placed into liquidation. The Covid pandemic and rising interest rates have been blamed for contributing to Beston’s collapse.
SA Dairyfarmers’ Association president Robert Brokenshire welcomed the announcement.
“The State Government is committed to a strong dairy industry and this support to those Beston farmers is paramount to the sustainability of the billion dollar SA dairy industry,” he said.
“SADA appreciates the understanding and support the State Government has shown.
“The Beston Farmers have had a double whammy, with the impact of a severe drought like all other farmers, but further complicated by not receiving significant milk payments for milk they had produced.
“This will help them to get through a very tough situation and also be able to pay creditors in the regions that have been waiting many months for their payments of goods supplied to those farmers.”
State Treasurer Stephen Mullighan said the government was committed to ensuring the state’s dairy industry continues to thrive, despite recent challenges.
“We have listened to the SA Dairyfarmers’ Association and through a $3m support scheme, we’re helping South Australian farmers get back on their feet,” he said.
Minister for Primary Industries and Regional Development Clare Scriven said the state’s dairy industry was valued for its significant economic contribution as well as its premium products, which are supplied around Australia and the world.
“We are committed to working with the SA Dairyfarmers’ Association to help ensure our state’s strong industry overcomes challenging market conditions and continues to grow,” she said.
