Cambridge-based farming business HS Fresh Foods enters voluntary administration
The state’s peak farming union wants to see a national farming business, which has its roots in Tasmania, salvaged after it entered voluntary administration.
Tasmania
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A company that started as a Tasmanian family-run business and has its products shipped to Woolworths and Coles has entered voluntary administration.
HS Fresh Food, whose headquarters are at Cambridge, collapsed on June 14.
The company, which specialises in fresh salads, ready-made meals, snacks, food-to-go, and pre-prepared vegetable products, brought in FTI Consulting administrators Vaughan Strawbridge, Joanne Dunn, and Ben Campbell.
HS Fresh Food started after Tasmanian-based Houston’s Farm joined forces with mainland companies Sunfresh Salads and Gourmet Selections.
It is understood that the original owners of Houston’s Farms are no longer part of HS Fresh Food.
Attempts to contact Houston’s Farm and HS Fresh Food were unsuccessful, but the administrators said they were confident the company would find a buyer.
However, administrators could not confirm to the Mercury how many Tasmanian suppliers or workers would be affected if HS Fresh Food did not survive.
The state’s peak farming body wanted to see the company stay afloat.
“We are hoping that the company, including Houston Farms, can be sold really quickly, and the employees that are working and the suppliers that are supplying that company can continue on,” TasFarmers President Ian Sauer said.
“Houston Farms and the vegetable sector are part of a high-value industry in Tasmania.
“There is a goal to reach 10 billion farmgate sales by 2050, and it’s these high-value crops that are going to help us get there.”
Mr Sauer said that the voluntary administration of HS Fresh Food reflects the challenges within the agricultural industry.
“People talk about the cost of living crisis, but that isn’t just felt by consumers. It’s felt by the producers and everyone that’s in the agricultural field at the moment.
“There’s been bad weather out there, interest rates are going up, labour costs are going up, and it’s hard to get workers.”
If HS Fresh Food did not find a buyer or restructure the business, Mr Sauer was concerned about the impact it would have.
“When you see a Tasmanian-based company having financial troubles, you do get a ripple effect through the rest of the community.
“It’s really important to get this cleaned up as quickly as possible, back on in business.”