By Jess Baker
A renowned vegetable growing operation at Glen Aplin has gone belly up after more than 70 years and three generations in business.
Two entities in the Kirra Pines Farming group, owned and operated by the Carnell family, entered voluntary administration in early July following debilitating drought and Covid-related shutdowns.
At a meeting of creditors on 9 September, it was decided Carnell Family Farming and KPF Machinery would wind up operations.
Kirra Pines was highly regarded for its production of top quality tomatoes and capsicums, operating across 260 hectares on nine sites with about 25 local staff and 120 seasonal staff.
According to a report by the voluntary administrators of the two companies, John Park and Kelly Trenfield, Carnell Family Farming suffered financial losses due to a number of external forces over the past three years.
The company was said to have sustained significant damage to its crops from large hailstorms in December 2018 and from drought in 2019 and 2020, also losing revenue due to the Covid-19 pandemic and falling returns for tomatoes and capsicums.
Administrators noted Carnell Family Farming was unable to obtain any more bank loans and the percentage of its crops being graded as rubbish soared.
Despite receiving $500,000 in JobKeeper subsidies during the 2021 fiscal year, the company’s decline in revenue and increase in expenses proved to be too great.
In the year to June, the company had reached a loss of $2.17 million, taking the total losses since July 2016 to $5.61 million.
Like Carnell Family Farming, KPF Machinery suffered due to Covid-19 halted sales and a lack of adequate finance, but it was breaking even.
Administrators estimated Carnell Family Farming and KPF became insolvent around March this year, relying on trade creditors from about January.
In a statement released in July, Kirra Pines Farming managing director Tim Carnell said his family was “extremely disappointed” to be entering voluntary administration.
“Severe drought across eastern Australia and Covid-19 impacts to supply chain mechanics have heavily impacted the business and a higher cost of production combined with low prices for horticultural produce have proven the catalyst for the decision,” the statement read.
“We are extremely disappointed this situation has emerged and want to acknowledge the hard work and dedication of the Kirra Pines team.
“We remain very proud of what Kirra Pines has achieved in terms of the contribution it has made to the Granite Belt community.”
