Beston Global Foods’ four Mount Gambier dairy farms has been sold to Melbourne-based Aurora Dairies in a $40.4m cash deal, including water licences and all other operating assets.
In a statement to the Australian Stock Exchange, Beston said it would use the proceeds to increase milk supply, expand Mozzarella and Lactoferrin production and reduce debt levels to under 10pc.
Beston Global Foods chief executive Jonathon Hicks said securing a long-term milk supply while minimising operational farm risks was a key benefit of the sale.
Mr Hicks said the sale would ensure continuity of milk supply to the company’s cheese production facilities at Murray Bridge and Jervois and allow Beston to continue boosting output and improving efficiencies.
Despite changes in product sales as a result of COVID-19, Mr Hicks said the demand for Beston’s Mozzarella product had been steadily increasing.
“When we posted our half year in February of this year, we reported that Mozzarella sales had increased by 59pc to 4290 tonnes – an increase of 2690 tonnes on the previous half,” Mr Hicks said.
“Since then, Beston’s award winning Mozzarella cheese has received a further boost in recognition when the
Mozzarella produced for a major Australian retailer received the coveted Canstar Blue Award for the Mozzarella Cheese category, amassing it’s full five stars for overall satisfaction.
The company said staff currently employed at Beston’s farms would be offered ongoing employment with Aurora, subject to “normal recruitment screening processes”.
Aurora Dairies currently manages 18 dairy farms throughout the Limestone Coast and Victoria, with a forecast annualised milk production of 100 million litres.
