Beston Global Food Company says its $26.5 million contract with a multinational’s Australian operations will produce 2600 tonnes a year for the next 18 months.
Interim CEO Darren Flew said it means that 50 per cent of its total mozzarella production capacity would be accounted for.
“The contract reflects three years of hard work from the combined efforts of Beston’s sales and production teams and extensive trials undertaken with the customer,” Flew said.
Beston has invested heavily in its mozzarella plant in Jervois, South Australia. It commissioned the plant in 2018 for $26.5 million.
Flew said its flexibility to product mozzarella to different specifications helped secure the contract. He said it was also beneficial in light of COVID-19.
“COVID-imposed restrictions have meant that finding container space to meet export deliveries has become more difficult. Having more of our market on-shore will be beneficial over the next 12-18 months as we continue to build export opportunities for when these markets become more open and accessible, post the pandemic,” Flew said.
In 2020, it received a $2 million grant from the South Australian government’s Regional Growth Fund to expand the plant’s lactoferrin production capability. Works were completed in June this year.
CEO steps down
CEO Jonathan Hicks tendered his resignation following compassionate leave due to his partner being seriously ill. Hicks said it was important he focused on the wellbeing of his family.
“It has been an extremely difficult decision to make,” he said.
Beston Foods chair Dr Roger Sexton said the board understood his decision and accepted it with regret. “On behalf of all shareholders, suppliers and staff, we wish him and his family the very best of outcomes,” Sexton said.
Flew will continue as interim CEO while the company conducts a search for a new CEO.
