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Legislative Council - Fifty-Fifth Parliament, First Session (55-1)
2024-11-26 Daily Xml
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Beston Global Food Company

The Hon. J.S. LEE (Deputy Leader of the Opposition) (15:30): I seek leave to make a brief explanation before asking a question of the Minister for Primary Industries regarding agricultural jobs.

Leave granted.

The Hon. J.S. LEE: Today, at 9am, staff at Beston Global Food Company in Murray Bridge were told that they no longer have a job. At 9.15am, around 30 farmers, who are owed somewhere in the approximation of $10 million, were told that negotiations had collapsed and that NAB was walking away.

The opposition have been advised that a final business case to support continued operations was still being worked through by administrators, and we understand that a report on a final solution was due in about a fortnight, but that is no longer the case. In September, Beston was reported as having 159 staff across two locations. Now we have more jobs in primary production slashed right before Christmas. My questions to the minister are:

1. When was the last contact the minister had with executives at Beston and NAB prior to this morning's announcement?

2. What plans are in place to support those affected by the job losses from the Beston Global Food Company?

3. Why are we seeing so many job losses in SA under this minister in the vitally important primary industries sector?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:32): I thank the honourable member for her question. Members may recall that Bestons went into administration I think on 23 September. Sorry, the announcement I think was on 23 September. On 20 September, KPMG were appointed as joint and several administrators of Bestons and its wholly owned subsidiary, Beston Pure Dairies Pty Ltd.

I understand that on 17 October the Federal Court of Australia granted an extension of the convening period of the voluntary administration and ordered that the administrators are justified in entering a loan between Beston and NAB to fund the continued trading by the business during the voluntary administration. The convening period was then to end on 28 February 2025, with the second meeting of creditors being held no later than 7 March 2025.

It is correct that as of today there has been an additional change in those circumstances. I have been advised that NAB made the decision to no longer fund those operating expenses. Therefore, notification has been made to staff and to the farmers who provide milk to Bestons.

My understanding is that it is still within the administrative process and that there is still hope that there may be a purchaser of the Beston business, although I think the actual suppliers and operations will cease on 1 December, according to my advice, so that is next week. It is still possible that there may be someone who has put in—there was a preferred bidder who was working with the administrators, and that was the business case to which I think the honourable member refers.

It is important that there is the opportunity for the business to go through the rest of that process. Clearly, it would have been preferable if that could have been sold as an ongoing concern. It is not yet clear whether that is still possible and, if so, who some of the other bidders may be; however, the South Australian Dairyfarmers' Association has been working closely with government to see whether there is an opportunity to assist, and I have been in frequent contact with that organisation.

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