full fat dairy products
full fat dairy products

Beston Global Food Company, a renowned South Australian dairy producer, is set to close down after failing to secure a buyer during its extended voluntary administration.

The company collapse would mean dozens of farmers being left without buyers for their milk and owning millions of dollars for previous supplies.

Beston, which boasted a lineup of global clients, including pharmaceutical and health nutraceutical companies, mainly produced premium cheese products, whey, and lactoferrin protein, 7 News reported.

The company's closure will impact suppliers and consumers alike and will also mark the end of an era in the dairy sector in South Australia.

The administrators were forced to stop funding the company after Nov. 30, as the company was experiencing significant weekly trading losses, a KPMG representative said in a statement.

"While the administrators provided certain parties with additional time to finalise the terms of their respective offers, these parties have been unable to put forward a binding offer for a going concern sale," the statement said.

"Ultimately, the sales process has failed to secure a buyer in the time frame required given the trading losses being incurred. The administrators have been left with no alternative but to wind down the business and begin an orderly sale of its assets."

Rob Brokenshire, president of the South Australian Dairyfarmers' Association (SADA), expressed disappointment, saying the industry had hoped that a buyer would be found to salvage the company.

"The demise of Bestons comes as a blow to us all," Brokenshire said. "However, the South Australian dairy farmer is nothing if not resilient and SADA will find other mechanisms to assist their members in protecting their interests into the future."