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Tolga peanut industry receives Kingaroy offer after Bega closure announcement

One of Qld’s largest family-operated peanut factories has offered a lifeline to Far North growers facing the closure of their industry.

One of Qld’s largest family-operated peanut factories has offered a lifeline to Far North growers facing the closure of their industry. Photo Erica Murree / Central & North Burnett Times
One of Qld’s largest family-operated peanut factories has offered a lifeline to Far North growers facing the closure of their industry. Photo Erica Murree / Central & North Burnett Times

One of Queensland’s largest family-operated peanut businesses has offered a lifeline to Far North growers facing a potential end to their industry as a local factory winds down.

Major food brand Bega last week announced it would wind down subsidiary Peanut Company of Australia, which operates a 15-worker shelling plant at Tolga in the Tablelands and has a factory at Kingaroy.

The decision, influenced by a reported decline in value of the local industry competing with imported products, would mean the South Burnett region’s Crumptons would be one of the state’s last remaining major peanut factories.

The family farm’s chief executive, Sonie Crumpton, said he had been inundated with questions from within the industry and media since Bega announced the PCA closure, but he wasn’t in the market for the Tolga assets.

File photo: Pictured in 2020 - Peanut Company of Australia waste management technician Juston Otto working on maintenance at the Tolga peanut factory. Picture: PETER CARRUTHERS
File photo: Pictured in 2020 - Peanut Company of Australia waste management technician Juston Otto working on maintenance at the Tolga peanut factory. Picture: PETER CARRUTHERS

“I simply don’t have the resources to go buying and running that facility up there,” Mr Crumpton said.

“I think the best thing would be if a group of farmers came together and looked to take over the Tolga facility themselves, and I would be willing to work with them.”

He said this would mean growers oversee the shelling process at Tolga themselves and then transport the nuts to his factory for further processing.

“At the moment, PCA would be buying the peanuts from them directly and then shell them at Tolga, and then send them to Kingaroy. This way the farmers are in control of their own destiny,” he said.

The peanut silos at Kingaroy. Bega’s facilties in the South Burnett Region and at Tolga are set to be wound down.
The peanut silos at Kingaroy. Bega’s facilties in the South Burnett Region and at Tolga are set to be wound down.

It’s understood since Bega’s announcement, there was also a number of other industry heads considering a buyout of the Tolga facility, which will be wound down by the national brand over the next 18 months.

Bega Group chief executive Pete Findlay said there were about 60 growers supplying the Tolga plant, who had been notified PCA, would be unable to buy their 2026 crop.

“We understand the impact this decision will have, and we will work closely with growers and employees to support them through this period,” Mr Findlay said.

“Bega Group would welcome any potential new owners to come forward with interest in taking over the operation of PCA’s Tolga and or Kingaroy sites.”

A Graham Rd, Tolga peanut crop. There are about 60 growers in the Atherton region supplying the local shelling facility. Photo: Jenny Wenham
A Graham Rd, Tolga peanut crop. There are about 60 growers in the Atherton region supplying the local shelling facility. Photo: Jenny Wenham

Tablelands Division 6 councillor Kylie Lang, who grew up in the Kingaroy region, said the PCA closure was a “massive blow” to local growers.

“This could be the end of the local industry, but I am waiting on more information from Bega,” Ms Lang said.

“It is a massive blow to our local industry and our farmers and it’s time for people to maybe start looking at buying local because that is part of the reason why this is happening.

“I grew up in Kingaroy and I used to run through the paddocks and pick peanuts as kids so it’s something pretty close to my heart.”

Originally published as Tolga peanut industry receives Kingaroy offer after Bega closure announcement

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Original URL: https://www.themercury.com.au/news/cairns/tolga-peanut-industry-receives-kingaroy-offer-after-bega-closure-announcement/news-story/602364fce4f6bb9c65872c88227c3ac1