Bega shuts down peanut factories, leaving 150 workers and 90 growers in the lurch

Bega Australia will wind down the Peanut Company of Australia after a review found it was hemorrhaging up to $10 million each year, leaving up to 150 workers and 90 growers in the lurch.

Australia's largest peanut company will undergo a phased shutdown of processing facilities at Kingaroy and Tolga in Queensland over the next 18 months.

Bega Group Chief Executive Officer Pete Findlay said he understood the impact the closure would have on staff and growers, and promised to work closely with them through this time.

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"Employees will be offered redundancies, support services and redeployment incentives and opportunities where possible," he said.

"Some employees will also be able to continue in their roles until closure."

Bega has also extended some of those employee support services to impacted growers.

The decision comes after a 12-month strategic review, prompted by continued financial losses and industry challenges.

The review concluded that the Peanut Company of Australia was incurring operating losses between $5 million and $10 million each year.

Bega tried to find a local and focused buyer who might better serve the company, but failed to do so.

"We announced the strategic review over 12 months ago, and we have explored several options to sell the business," Findlay said.

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"Unfortunately, we've been unable to find a buyer that could sustain a long-term future for employees and growers."

Bega had acquired the Peanut Company of Australia in 2017 during a time when it was under sustained financial pressure.

Over the years, the nation's peanut industry has also faced increased competition from imports, stronger returns for growers from other crops, high input costs and declining production.

Despite ongoing investments, significant site upgrades, and initiatives aimed at supporting growers, Bega conceded it has not been able to establish a sustainable business model.

Bega will maintain its two processing facilities in Crestmead and Malanda and its distribution network across Queensland.

Earlier this year, Bega announced it would close its Bega Cheese site in Strathmerton in a phased shutdown that will conclude by mid-2026.

About 300 workers are impacted.

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