Major Granite Belt company Kirra Pines Farming enters voluntary administration

The prominent family-owned business, which employs about 145 staff members, made the shock announcement following a ‘challenging period’ of severe drought and COVID sending costs of production skyrocketing.

CASHED OUT: Kirra Pines Farming has gone into voluntary administration after a “challenging period” amid drought and COVID. Picture: iStock

Prominent Granite Belt produce company Kirra Pines Farming has gone into voluntary administration, citing the prolonged drought and COVID as wreaking havoc on the industry.

Carnell Family Farming and KPF Machinery were both appointed to voluntary administrators Kelly Trenfield and John Park of FTI Consulting on Monday.

A statement released by the consultancy firm said the final call came after a “challenging period” for the family-owned business.

“Severe drought across eastern Australia and COVID impacts to supply chain mechanics have heavily impacted the business, and a higher cost of production combined with low prices for horticultural produce have proven the catalyst for the decision,” the statement read.

“The administrators will conduct an independent assessment of the financial position and ongoing viability of Kirra Pines, and seek to maximise the chances of exiting the voluntary administration process in a sustainable position.”

Kirra Pines Farming managing director Tim Carnell said it was a difficult decision for his family. Picture: Tom Threadingham / Gatton Star

The statement also indicated 25 staff and 120 seasonal staff were employed across nine Kirra Pine sites, which supplied largely tomato and capsicum produce to retail, wholesale, and food service markets.

Kirra Pines Farming managing director Tim Carnell said his team were “extremely disappointed” to be in their position and thanked their employees for their dedication.

“As an innovative and progressive business, we see ourselves as an integral part of the horticulture value chain,” he said.

“ However, despite (our) best effort to work through the devastating drought and the COVID pandemic, this difficult decision has been made by the family.

“We remain very proud of what Kirra Pines has achieved in terms of the contribution it has made to the Granite Belt community.

“Our focus is to work closely with staff, creditors, and related stakeholders and we remain hopeful Kirra Pines can be brought out of administration as soon as possible.”

Mr Carnell was contacted for further comment but declined at this stage.