Beston Global Foods has gone into voluntary administration. KPMG were appointed as administrators, once negotiations with Megmilk to purchase the company ceased. Beston has two facilities in South Australia, producing butter, milk, mozzarella and other cheeses, and supplies lactoferrin to Chinese infant formula companies.

Beston blamed exceptionally high operating costs including high energy costs and uncompetitive Australian farmgate prices in world markets for the collapse.

Beston’s 22 milk suppliers have not received complete payments for their milk over the past two months according to South Australian Dairyfarmers Association (SADA) president Rob Brokenshire. SADA said administrators have promised milk payments in full and is hopeful a buyer will be found.