UNITED Dairy Power’s (UDP) plants at Murray Bridge and Jervois will reopen in September.
Adelaide-based Beston Global Food Company (BGFC) has come to the rescue of the troubled milk processor, by contracting to buy it out of receivership and supply quality South Australian milk products to Asia.
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In April this year, UDP went into administration as it was only receiving a third of the amount of milk it needed to remain open.
Former UDP workers can now breathe a sigh of relief as UDP receivers, PPB Advisory, confirmed all staff entitlements would be paid out in full on or before June 30.
Beston Global Food Company non-executive chairman Roger Sexton said they wanted to take premium clean, green Australian food and beverage products into global markets.
“Being able to purchase and revitalise United Dairy Power is a win-win,” he said.
“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 (Association of Southeast Asian Nations) region by BGFC subsidiaries based in Thailand, Vietnam, China and Brunei.
“BGFC has secured additional dairy resources to feed its growing overseas markets; we make an even greater contribution to realising the State’s food export vision, and through our investment we are adding value to a regional economy and keeping local jobs and ownership.”
The Standard has been told the dairy plants will be built up over a period of time and renamed Beston Pure Foods, eventually employing up to 130 staff.
BGFC has created a range of natural, clean and green products, including high probiotic yoghurt and milk drinks, nutritional supplements and organic beverages, all of which are in high demand in Asia, and will be progressively introduced into production at Murray Bridge and Jervois over the next three years.
Member for Hammond Adrian Pederick said it was fantastic news to see a company willing to purchase the plants and relieve Murray Bridge of its 10.6 per cent unemployment rate.
“To have these 100 jobs back is a real win, a real boon for the region,” he said.
“The disappointment in all this is it’s been such an up and down ride for everyone involved, whether they be workers at the plant or milk suppliers.
“The Sexton group obviously believe in the workforce and believe in the future of dairy in this State and the region.
“I think where we’ve landed now is probably the most secure position we’ve probably been in for four years in regards to these factories.”
BGFC will also work with the SA Government and PIRSA to help local farmers increase their on-farm productivity and supply more milk to the factories, along with other raw material ingredients required for the new products.
The settlement of the UDP acquisition is conditional on the resolution of a number of receivership related matters.
