Beston Global Food Company (ASX:BFC) - Voluntary Administration

Beston Global Food Company (ASX:BFC), a South Australian dairy company, entered voluntary administration on 20 September.

According to the company’s website, outside of multinationals, Beston is the largest company in the Australian dairy industry. In addition to the 22 farmers who supply milk to the company, Beston employs approximately 160 people across its two sites in Jervois and Murray Bridge.

The company has been working on a plan to address challenges in its operating environment, including persistent cost pressures, unusually volatile global dairy prices, and higher-than-expected milk volumes at a time when farmgate milk prices have been uncompetitive versus global markets.

In August, the company announced that a binding proposal from a “major international dairy company” (now known to be Japanese company Megmilk Snow Brands) was expected to be received before 9 September. However, the deal fell through after terms couldn’t be reached, and Tim Mableson, James Dampney, Gayle Dickerson and David Kidman of KPMG were appointed voluntary administrators. They are running the business while they assess options.