The South Australian government has announced a $3 million support scheme for dairy farmers affected by the Beston Global Food collapse. This move aims to bolster the state’s dairy industry.
Beston’s liquidation late last year left farmers holding a $11.6 million bill for already supplied milk to the processor.
Until its collapse, Beston Global Food Company Limited and Beston Pure Dairies purchased about 20% of all South Australian milk supplies.
The SA Dairyfarmers’ Association (SADA) will administer the program with support from the South Australian Government Financing Authority (SAFA). Grants will be available to dairy farmers listed as creditors in the Beston liquidation process, to help re-establish and grow their businesses. Funds can be used for farm modifications, invoice or account payments, or to reduce working capital debt facilities.
Treasurer Stephen Mullighan emphasised the government’s commitment to the industry’s prosperity. “We’re helping South Australian farmers get back on their feet,” he stated.
SADA President Robert Brokenshire described the situation as a “double whammy” for farmers.
Noting that the state “couldn’t afford to lose any more dairy farmers”.
South East dairy farmer John Hunt, who is owed $700,000 by Beston, welcomed the initiative.
“It’s a real great feeling for farmers,” he said. “We’ve been affected by higher costs and the dry conditions… so to get this is real relief.”
Clare Scriven, Minister for Primary Industries, highlighted the importance of the dairy industry. She noted that the South Australian diary industry is valued for its “significant economic contribution as well as its premium products, which are supplied around Australia and the world”.
The support scheme is seen as crucial for maintaining South Australia’s billion-dollar dairy industry. Brokenshire stressed the high risk to the industry if affected farmers couldn’t survive.
“It’s a package now that will help those 43 milk suppliers remain sustainable, pay off some debt, pay some creditors, and importantly, help us keep the billion dollar SA dairy industry going,” Mr Brokenshire said.
“Every farmer is doing it tough at the moment, but the exception here was that these farmers are dealing with drought, high input costs, interest rates that are still high, and on top of that, hundreds of thousands of dollars in many of those cases that were not paid after milk was provided to Bestons.
“The government realised this was an unusual but high-risk area for our industry if those farmers can’t survive.”
With this timely intervention, the South Australian government has thrown a lifeline to its dairy farmers. As SADA prepares to distribute grants, there’s hope for industry stabilisation.
Sources: Government of South Australia, ABC