Latest news with #Kingaroy
ABC News
10-07-2025
- Business
- ABC News
Bega's 100 per cent Australian peanut butter continues despite processing plant closure
Bega Group says it will continue to produce 100 per cent Australian-grown peanut butter despite closing two processing plants in Queensland. The company announced yesterday it will wind up facilities in Kingaroy in the South Burnett and Tolga in Far North Queensland over the next 18 months. Chief executive Pete Findlay said the company would buy processed peanuts from another food manufacturer. "There's another processor in the Kingaroy region, so we will look to transact with that processor," he said. Mr Findlay said that when Bega Group purchased the Peanut Company of Australia in 2017, it was operating under "sustained financial pressure". "It was facing a fairly rocky future. We thought that we might be able to turn the business around," he said. But even after investing $15 million on plant improvements and lifting production from 8,000 tones to 25,000 tonnes, he said it never became profitable. "It's meant that we've incurred tens of millions of dollars of losses over that time," he said. Mr Findlay said the existing processor in Kingaroy had the capacity to produce the amount of product Bega needed to keep its 100 per cent Australian peanut butter on the shelves. Mark Young is the third generation on his family farm in Kingaroy; his great-uncle and grandfather Ben and Harry Young were known as the fathers of the region's peanut industry. Mr Young said it marked the end of an era. "It's a 100-year-old iconic business. I don't believe it ever needed to close," he said. "It had a brand label that was very well supported, had very, very loyal growers and it had very, very good people working for it. Mr Young's daughter, Kristy, who also works on the family farm, said the closure was devastating. "Generations before me have worked so hard to build this industry, and it feels like it's just been swept under the rug," she said. Mr Findlay said this year's crop was still being cleaned and shelled, and processing would continue at the site until its closure in December 2026. "We also need to give farmers a chance to think about what they want to do next season," he said. About 130km north of Kingaroy, the harvest has just finished at Ben Rackemann's peanut farms in Coalstoun Lakes. Most of his crop is sent to Kingaroy's other processor, Crumptons, and he expected peanuts to remain in his rotation next season. "I have a fair bit of confidence with Crumptons," he said. "I don't know about the entire industry, but I'm hoping that we will still have a certain amount of peanuts within that rotation." His wife, Stephanie, said her family had always considered the peanut industry to be relatively stable, but now it was clouded in uncertainty. "There have been some conversations over the past 12 months … it really changes how we are going to do things." While Mr Rackemann was optimistic about his operations, he was worried about what Bega's closure could mean for consumers. Last week, Coles recalled its home brand 1kg jars of smooth and crunchy imported peanut butter. Traces of aflatoxin — a type of toxic mould — were detected in jars dated best before 05/02/2027 that had been sold online and in stores nationally. "It's getting harder and harder to buy Australian peanut butter," Mr Rackemann said. "They are definitely out there, so I would urge everyone to go and buy [Australian peanut butter]." While the contaminated peanut butter had no connection to the Bega Group, Mr Findlay said there were stringent testing processes for all the food they produced. "We spend a huge amount of money on appropriate lab testing … we take quality incredibly seriously," he said. "It helps that we're producing the product here in Australia." In Far North Queensland, peanuts have been part of the rotation for farmers on the Atherton Tablelands for more than 90 years. Known for putting nitrogen back into the soil, peanuts are popular with sugarcane growers. Claude Santucci from Mareeba said peanuts improved soil health, cane quality, and yield. "[I'm] really disappointed and saddened to hear the news," he said. "If we're going to lose a peanut industry on the Tablelands, that will have an impact on some of these cane growers." Mr Santucci said corn and potato growers would also be affected, and it would not be easy to replace peanuts. "Soybean is probably going to be the most important crop or notable crop to replace peanuts," he said. "I'll certainly have to look at other options now, and it's not going to be very easy to do that either. "Peanuts were really nice crops to be growing."
Daily Mail
09-07-2025
- Business
- Daily Mail
BREAKING NEWS Bega to close major peanut factory with more than 150 jobs at risk in Queensland
The corporate owners of Australia's biggest peanut supplier is shutting down the century-old business, putting 150 jobs at risk. Bega will scale down Peanut Company of Australia's Kingaroy and Tolga facilities in Queensland before they're closed for good in 18 months time. 'We understand the impact this decision will have,' Bega Group chief executive Peta Findlay said.
News.com.au
09-07-2025
- Business
- News.com.au
Bega to close 100-year-old peanut factory to close, 150 jobs at risk
More than 150 jobs are in doubt following Bega Group's decision to wind down the Peanut Company of Australia, bringing an end to nearly a century of peanut processing in Kingaroy, Queensland. The company announced on Wednesday that it would begin a phased shutdown of PCA's facilities in Kingaroy and Tolga over the next 18 months. The closure follows a 12-month strategic review and years of ongoing financial losses. 'PCA had been under sustained financial pressure for several years prior to its acquisition by Bega Group in 2017,' the company said in a statement. 'Despite ongoing investments made by Bega Group into PCA's operations, including significant upgrades to site safety and initiatives aimed at supporting local growers to boost production, Bega Group has not been able to establish a sustainable business model.' The business said it had been operating at a loss of $5-10m per year and are anticipating one-off shutdown costs of $5-10m. Bega said the shutdown comes amid growing challenges in the Australian peanut industry, including import competition, rising costs, falling production, and better returns from alternative crops. 'We announced the strategic review over 12 months ago and we have pursued several options to sell the business. Unfortunately, we've been unable to secure a buyer that could sustain a long-term future for employees and growers,' Bega Group chief executive Pete Findlay said in a statement to the ASX. The company said it would offer support services, redeployment incentives and redundancy packages to affected employees, some of whom will continue in their roles during the wind-down period. 'We understand the impact this decision will have, and we will work closely with growers and the approximately 150 employees at the Kingaroy and Tolga facilities to support them through this period,' Mr Findlay said. Bega had informed growers in August last year that it could not commit beyond the current season's crop. PCA and its predecessor organisations have been based in Kingaroy since 1924. The town has long been associated with peanut production, and its iconic peanut silos were built between 1938 and 1951. Nanango MP and Queensland Attorney-General Deb Frecklington said the announcement was a 'deeply disappointing blow' in a statement on Wednesday. 'Bega is a highly profitable multinational company and this decision will devastate the local community who have been loyal to the brand for many years,' she said. 'Kingaroy has long been synonymous with peanut growing and processing and PCA's processing business – and its heritage listed peanut silos in Haly St – have been an iconic local landmark for nearly a century.' Nationals Leader David Littleproud said he was 'deeply saddened' by the announcement saying PCA processed 19,000 tonnes of Aussie peanuts each year.
ABC News
09-07-2025
- Business
- ABC News
150 jobs in doubt as Bega winds down peanut processing plants in Queensland
Bega Group has announced it will close two of its peanut processing plants, putting the jobs of about 150 people in doubt. The Peanut Company of Australia (PCA), which was bought by Bega Group in 2017, has two plants: Tolga in Far North Queensland and Kingaroy in the South Burnett. In a statement released by Bega Group, it said PCA had been under sustained financial pressure for several years prior to its acquisition, losing $5–10 million a year. Bega Group chief executive officer Pete Findlay said they explored several options to sell the business. "Unfortunately, we've been unable to find a buyer that could sustain a long-term future for employees and growers," he said. "We understand the impact this decision will have … employees will be offered redundancies, support services, and redeployment incentives and opportunities where possible. "Some employees will also be able to continue in their roles until closure." He said peanut growers were advised the company could make no commitments beyond the current season's crop. The ABC understands Bega Group plans to meet with growers this afternoon.
ABC News
09-06-2025
- ABC News
South Burnett school employee faces court charged with child sex offences
Queensland police have charged a 67-year-old man, who was employed at a school in Queensland's South Burnett region, with child sexual offences. Police allege the offences were committed over a five-month period between January and June this year. The man has been charged with four counts of rape and appeared before the Kingaroy Magistrates Court earlier today. In a statement, Queensland's Department of Education said it was aware a school staff member had been charged with deeply concerning offences. The department confirmed the individual concerned was no longer working at a state school. The statement also said there was no higher priority than protecting the safety and wellbeing of students, and that support would continue to be provided for any students, parents or staff requiring assistance.
