Australian Peanut Industry Finds New Hope After Bega's Exit

When Bega Group, a major Australian food and drinks company, left the peanut industry 11 months ago, growers were uncertain about the future of their industry.

But now there is renewed confidence in this year's harvest.

Queensland peanut growers were left in limbo when Bega decided to shut down its processing plants in Kingaroy in the South Burnett and Tolga in the Far North last year.

Tolga peanut grower Richard Standen did not even know if he would plant a crop this year after Bega's exit from the industry.

However, in September, Kingaroy-based family business Crumpton Group — a key player in the peanut industry for decades, both as a grower and processor — bought both processing sites.

Mr Standen said it had been a lifeline.

"It's terrific," he said. "Growers needed the industry to stay here, so we were really grateful to Crumptons.

"We wouldn't have grown them [peanuts] if we had to send them further away. It just wouldn't have been worth it … but it's heartening to know that [Crumptons] are there to receive the crop."

There is a similar sentiment in Kingaroy.

"We're very thankful that Crumptons are still there because, if they weren't there, I don't know what would have happened last year when Bega closed down," Kingaroy peanut grower Ben Campbell said.

Challenges remain despite optimism

Mr Campbell is nearing the end of harvest, with about 75 per cent of his crop already delivered to the processing site.

He is expecting to deliver about 350 tonnes this season but said yields and quality had been below average.

Mr Campbell said a dry summer followed by a wet start to autumn had affected production.

Meanwhile, in Tolga, Mr Standen is preparing to begin harvest and said his crop was looking promising.

At the Crumpton Group's Tolga facility, operations manager Alex Crumpton said some growers had been hesitant to plant this year after Bega's exit.

"There was uncertainty around whether we were going to buy the site or not, so a lot of farmers didn't want to plant, which is understandable,"

he said.

About 20 growers are supplying peanuts to the Tolga facility this year, with between 2,500 and 3,000 tonnes expected to be processed.

Mr Crumpton hopes more growers will plant next year and eventually lift throughput to about 6,000 tonnes annually.

While confidence is improving, growers say profitability remains under pressure from imported peanuts.

"The prices this year are down, maybe around 10 per cent on last year," Mr Campbell said.

"The reason for that is imports. We need to remain competitive."

Crumptons expanding Tolga site

Currently, Tolga peanuts are shelled and graded at the local facility but then must be sent to the Kingaroy facility for further processing before reaching the market.

Mr Crumpton said the group was investing heavily, with plans to significantly upgrade the Tolga site.

"When we upgrade the [Tolga] facility, we'll be incorporating colour sorters and X-ray machines so we can sell straight from here,"

he said.

He wanted to give growers assurance that Crumptons was here to stay.

"We're putting a lot of money into the site. The family have sent me up here,"

Mr Crumpton said.

"I hope that sort of shows people that, by me moving up here, it's not just like Bega being a massive company. I'm a part of the family.

"So, hopefully I'm the next generation that can take over the business and keep running it for the next 50 years. [That] would be nice."