Beston Global Food Company, which is planning a $100m initial public officer for a late July listing on the Australian Securities Exchange, expects to supply the “dining boom” in China with powdered milk and cheese processed at its Murray Bridge and Jervois plants.
The plants will reopen in September under a new Beston Pure Foods brand and form part of a dairy portfolio which includes biodynamic producer b.-D. Farm Paris Creek, for exports of “clean and green” products into Asian markets.
The deal counters bad news for the state which last week recorded the nation’s highest May unemployment figures of 7.6 per cent on the same day Alinta Energy announced its decision to close two coal-fired power stations at Port Augusta 300kms north of Adelaide and the Leigh Creek coal mine that feeds them as early as April next year with the loss of 440 jobs.
Beston chairman Roger Sexton, who is also chairman of the $3 billion listed company IOOF Holdings, said the premium food focused export company had beaten dozens of potential buyers for UDP’s assets and would invest more than double the estimated $12 million price to upgrade the processing plants.
“Our company will invest considerable capital into UDP to upgrade its facilities at Murray Bridge and Jervois, increase the production capacities of the two plants and introduce new products for distribution into China and the ASEAN region by Beston Global Food Companies subsidiaries based in Thailand, Vietnam, China and Brunei,’’ Dr Sexton said.
UDP collapsed in April with the loss of 100 workers and contractors at both plants and about 20 workers in Victoria at a forecast economic loss for the region of about $170 million.
Warrnambool Cheese and Butter had secured 40 million litres of milk supplied to UDP by about 40 dairy farmers in the interim.
Dr Sexton said dairy, seafood, meat and bio technology companies were part of Beston’s business model of a closed loop supply chain to take advantage of a huge demand for green food in Australia.
Source: The Australian
