ONE of the country's biggest suppliers of capsicums, zucchinis and tomatoes, Barbera Farms, was forced into receivership on Monday under the weight of debts and the pricing squeeze from its large supermarket customers.
The family-owned Barbera operated in the Bundaberg and Bowen regions of Queensland and was one of the largest independent small crop growers in the country.
Barbera is now under the control of Ernst & Young, which was called in by lender Suncorp. Property executives flagged a potential damages claim against the bank for its actions as the group's business shrank and attempts to refinance failed, The Australian Financial Review reports.
But the bank said it supported the farming group, which also ran its own transport network.
"We worked with the company over an extended period of time to provide support during difficult trading conditions but were at a point where we had to appoint a receiver/manager to determine the best course of action for that company going forward," a Suncorp spokesman said.
Trucks continued to come and go from the company’s Calavos packing facility yesterday, as if nothing were amiss.
FarmOnline understands some Barbera Farms’ workers are owed considerable amounts of unpaid superannuation - in some cases, several years’ worth.
The financial distress comes on the back of a pending court case against Barbera Farms over the death of a German backpacker while working on the farm in December 2009.
The case has been adjourned twice, with June 9 now the new proceedings date.
- with Good Fruit and Vegetables