Iconic 100‑year‑old factory shuts down as hundreds of jobs hang in balance
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It marks a major turning point for a long-standing local industry. A major producer has confirmed the shutdown of a facility with deep roots in the community, one that’s been operating for generations and playing a vital role in the region’s identity.
Beyond the immediate impact on jobs, the closure signals the loss of something many saw as part of their way of life.
Since 1924, Kingaroy has been synonymous with peanut production. The town’s heritage-listed peanut silos, built between 1938 and 1951, have stood as proud sentinels over the region’s agricultural landscape.
Generations of families have worked at the PCA, and for many locals, the smell of roasting peanuts is as much a part of Kingaroy as the red soil itself.
But after a 12-month strategic review and years of mounting financial losses, Bega Group has decided to wind down operations at both the Kingaroy and Tolga facilities over the next 18 months.
The company cited ongoing losses of $5–10 million per year, despite significant investments in site safety, upgrades, and support for local growers.
The closure isn’t just about one company’s bottom line. It’s a sign of the times for the Australian peanut industry, which a perfect storm of challenges has battered.
A mix of global and local challenges has brought things to a breaking point—imports have undercut the market, rising input costs have strained operations, and dwindling production due to climate shifts and crop changes hasn’t helped.
Despite a year-long effort to secure a new owner, no viable buyer emerged, leaving everyone involved's future uncertain.
Bega Group CEO Pete Findlay summed it up: ‘We have pursued several options to sell the business. Unfortunately, we’ve been unable to secure a buyer that could sustain a long-term future for employees and growers.’
For the 150 workers at Kingaroy and Tolga, the news is devastating. Bega has promised support services, redeployment incentives, and redundancy packages, and some employees will stay on during the wind-down. But for many, it’s a bitter pill to swallow.
Local growers, too, are left in limbo. Bega had already warned last August that it couldn’t commit to buying peanuts beyond the current season’s crop. For farmers who’ve spent decades perfecting their craft, the future is uncertain.
The closure has sent shockwaves through Kingaroy and beyond. Nanango MP and Queensland Attorney-General Deb Frecklington called it a ‘deeply disappointing blow’, pointing out that Bega is a highly profitable multinational company.
‘This decision will devastate the local community who have been loyal to the brand for many years,’ she said.
Nationals Leader David Littleproud echoed the sentiment, noting that PCA processed 19,000 tonnes of Aussie peanuts each year. The loss isn’t just economic, it’s cultural.
If you’re a fan of Aussie-grown peanut butter, you might be wondering what this means for your favourite spread.
While Bega says it will continue to operate facilities in Crestmead and Malanda, and maintain its Queensland distribution network, the closure of Kingaroy’s factory could mean more imported peanuts in your jar.
Australia already imports a significant portion of its peanuts, and with local production falling, that trend is likely to continue.
For those who prefer to buy local and support Aussie farmers, this is a tough nut to crack.
The PCA’s closure marks the end of a remarkable chapter in Australian agriculture.
For nearly 100 years, Kingaroy’s peanuts have been a source of pride, employment, and community spirit.
The heritage-listed silos may remain, but the heartbeat of the industry is fading.
Still, the story isn’t over. The resilience of regional communities is legendary, and Kingaroy has weathered storms before.
As the town looks to the future, there’s hope that new opportunities will emerge—perhaps in different crops, new industries, or even a peanut revival down the track.
Were you or someone you know connected to the Kingaroy peanut factory? Do you have fond memories of Aussie peanuts, or concerns about the future of local food production? We’d love to hear your stories, thoughts, and hopes for the future. Drop a comment below and join the conversation.
Read more: Smooth like butter? Recent changes in one famous ALDI product outrages shoppers
Beyond the immediate impact on jobs, the closure signals the loss of something many saw as part of their way of life.
Since 1924, Kingaroy has been synonymous with peanut production. The town’s heritage-listed peanut silos, built between 1938 and 1951, have stood as proud sentinels over the region’s agricultural landscape.
Generations of families have worked at the PCA, and for many locals, the smell of roasting peanuts is as much a part of Kingaroy as the red soil itself.
The century-old Peanut Company of Australia was set to close in Kingaroy and Tolga, putting around 150 jobs at risk. Credit: Facebook
But after a 12-month strategic review and years of mounting financial losses, Bega Group has decided to wind down operations at both the Kingaroy and Tolga facilities over the next 18 months.
The company cited ongoing losses of $5–10 million per year, despite significant investments in site safety, upgrades, and support for local growers.
The closure isn’t just about one company’s bottom line. It’s a sign of the times for the Australian peanut industry, which a perfect storm of challenges has battered.
A mix of global and local challenges has brought things to a breaking point—imports have undercut the market, rising input costs have strained operations, and dwindling production due to climate shifts and crop changes hasn’t helped.
Despite a year-long effort to secure a new owner, no viable buyer emerged, leaving everyone involved's future uncertain.
Bega Group CEO Pete Findlay summed it up: ‘We have pursued several options to sell the business. Unfortunately, we’ve been unable to secure a buyer that could sustain a long-term future for employees and growers.’
For the 150 workers at Kingaroy and Tolga, the news is devastating. Bega has promised support services, redeployment incentives, and redundancy packages, and some employees will stay on during the wind-down. But for many, it’s a bitter pill to swallow.
Local growers, too, are left in limbo. Bega had already warned last August that it couldn’t commit to buying peanuts beyond the current season’s crop. For farmers who’ve spent decades perfecting their craft, the future is uncertain.
‘This decision will devastate the local community who have been loyal to the brand for many years,’ she said.
Nationals Leader David Littleproud echoed the sentiment, noting that PCA processed 19,000 tonnes of Aussie peanuts each year. The loss isn’t just economic, it’s cultural.
If you’re a fan of Aussie-grown peanut butter, you might be wondering what this means for your favourite spread.
While Bega says it will continue to operate facilities in Crestmead and Malanda, and maintain its Queensland distribution network, the closure of Kingaroy’s factory could mean more imported peanuts in your jar.
For those who prefer to buy local and support Aussie farmers, this is a tough nut to crack.
The PCA’s closure marks the end of a remarkable chapter in Australian agriculture.
For nearly 100 years, Kingaroy’s peanuts have been a source of pride, employment, and community spirit.
The heritage-listed silos may remain, but the heartbeat of the industry is fading.
As the town looks to the future, there’s hope that new opportunities will emerge—perhaps in different crops, new industries, or even a peanut revival down the track.
Read more: Smooth like butter? Recent changes in one famous ALDI product outrages shoppers
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