Dairy farmers impacted by Beston closure will share $3m worth of support
Dairy farmers impacted by the Beston Food Company closure will be able to apply for financial relief thanks to a state government program.
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Local dairy farmers impacted by the closure of the Beston Global Food Company will now be able to apply for financial support from the state government.
Production ceased at Beston's Jervois and Murray Bridge factories last year; the company was placed under administration in September before collapsing in December.
Financial support will be available through an assistance program with administration help from the South Australian Dairyfarmers Association (SADA).
The $3 million support scheme will be offered to help farmers left out of pocket re-establish themselves.
This will hopefully enable them to invest in:
- Farm modifications
- Paying invoices or accounts
- Reducing working capital debt facilities
The grants will not exceed the amount lost as a result of Beston going into administration.
SADA, within agreed guidelines, will determine the best way to distribute grants based on each business’ requirements.
Compensation will help producers get through a hard time
SADA CEO Andrew Curtis said farmers specifically in the Murraylands had been hit by multiple impacts.
“On top of the drought and Beston closure, it’s been very hard period for them," he said.
The farmers along the river also not long ago had the floods, so it had been a tough and traumatic time, he said.
While the new support might not make up for their losses, it would help them get on with things.
Are you a former dairy supplier for Beston who would like to speak on this issue? Contact the author at liana@murraybridge.news or on 0412 137 606.
“We’re really appreciative of the government stepping in, and we look forward to working with them and making sure the people who are impacted will put their hand up,” he said.
The grants will be available to dairy farmers listed as creditors in the Beston liquidation process.
Applicants would be required to submit a plan for how they intend to utilise the funding to grow their business.
More than 150 workers and 40 farmers were affected by the closure of the dairy company’s factories.
A Beston employee job fair was held in December for factory workers struggling to find a new work place, but it took much longer for dairy farmers to get help.
The COVID pandemic and rising interest rates were both blamed for contributing to Beston’s collapse at the time.
State 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.
- Apply for support: Apply here before May 31.
More fodder on the way for drought-impacted farmers
Meanwhile, South Australian farmers battling the ongoing effects of drought will receive more fodder with the expansion of the state government's drought support package.
A further $4 million in state funding has been issued for the SA Donated Fodder Transport Drought Assistance Scheme, taking the total to $6 million.
The government has worked with SADA to create a high-quality, nutritionally balanced feed for cattle, as most other fodder isn't donatable to dairy farmers.
President of SADA, Robert Brokenshire said the feed was much needed in the challenging conditions.
"Dairy cows need specific, high-quality hay to ensure they remain healthy and that their milk production can be maintained."
"Regular hay received from charity donations is not tailored to the needs of dairy cows," Mr Brokenshire said.
Charity services such as Aussie Hay Runners, have delivered 140 trucks of donated fodder, supporting more than 170 farmers across the state.
Primary producers are encouraged to contact participating organisations directly to understand what types of fodder are available and to register their interest.
Support companies include Rural Aid, Rapid Relief Team, Aussie Hay Runners, Need for Feed, and Farmers Relief Agency.
- More information: Visit pir.sa.gov.au/drought.
