Bega Group will wind down operations of the Peanut Company of Australia (PCA) following a 12-month strategic review. The company, which has struggled financially since its acquisition in 2017, has been unable to establish a sustainable business model despite investments in site safety upgrades and support for local growers.
After exploring alternatives, Bega concluded that local ownership may offer a more viable future for PCA. However, if no suitable buyer is found, full closure is expected. The company has reported annual operating losses ranging between AUD 5 million and AUD 10 million—approximately US$3.3 million to US$6.6 million.
This decision will lead to a gradual shutdown of PCA's Kingaroy and Tolga facilities in Queensland over the next 18 months. Pete Findlay, Chief Executive Officer of Bega Group, explained, "We announced the strategic review over 12 months ago and 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."
Australia's peanut sector continues to face major challenges, including increasing competition from imports, higher grower returns from alternative crops, rising input costs, and declining domestic production. In June last year, Bega informed employees and growers of the strategic review, and by August, advised that commitments beyond the current crop season could not be guaranteed.
Bega Group is working to support the roughly 150 employees and growers impacted by the closure. The company plans to provide redundancy packages, support services, and opportunities for redeployment, with some roles expected to remain until the final stage of shutdown.
Source: Supermarket News
