$3m support scheme for dairy farmers hit with ‘double whammy’ drought and millions owed

A $3m support scheme is set to help some SA dairy farmers after they were hit with a “very tough situation”.

Beston dairy cows on the company's former farms at Mt Gambier. Picture: SUPPLIED

South Australian farmers dealt a “double whammy” with drought conditions and the collapse of a major dairy company, leaving some owed millions, will receive some relief.

A new support scheme for farmers impacted by the closure of Beston Global Food Company last year will ensure “the state’s dairy industry continues to thrive”, treasurer Stephen Mullighan said.

Beston, which employed about 150 people in SA — mostly at its Murraylands dairy operations — was placed into administration in September, and closed for good in December.

At the time, SA Dairyfarmers’ Association chair Robert Brokenshire said about 40 farmers were owed more than $10m for milk previously delivered, which they were unlikely to ever see.

SA Dairyfarmers' Association chairman Robert Brokenshire said the support was important. Picture: Supplied

A $3m support package will be announced by the state government to help dairy farmers left out of pocket to re-establish themselves.

Mr Brokenshire said on Saturday the support was “paramount” to sustain a “billion dollar” industry.

“The Beston Farmers have had a double whammy, with the impact of a severe drought like all other farmers, but further complicated by not receiving significant milk payments for milk they had produced,” he said.

“This will help them to get through a very tough situation and also be able to pay creditors in the regions that have been waiting many months for their payments of goods supplied to those farmers.”

Primary Industries and Regional Development Minister Clare Scriven announces support scheme for SA dairy farmers. Photo: NCA NewsWire/Emma Brasier

The $3m will be broken into grants to pay bills, invest in farm modifications, and reduce working capital debt.

They will be made available by SADA for farmers listed as creditors in the Beston liquidation under agreed upon guidelines and will not exceed the amount lost.

Primary Industries minister Clare Scriven said the state government was committed to working with the SADA to ensure the industry “overcomes challenging market conditions and continues to grow”.

Originally published as $3m support scheme for dairy farmers hit with ‘double whammy’ drought and millions owed