23-04-2025
WA producers hope Brownes Dairy will be purchased by an Australian buyer
Western Australia's oldest and biggest milk company is up for sale and dairy farmers hope it will be returned to Australian hands.
It is understood the Chinese owner of Brownes Dairy, the Mengniu Dairy Co, defaulted on its $200-million loan.
Brownes Dairy chief executive officer Natalie Sarich-Dayton told the
Brownes Dairy chief executive Natalie Sarich-Dayton says the partnership with Mengniu has been successful.
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ABC News: Samantha Goerling
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"This is purely at our parent ownership level back in China between two parties and an agreement that was made between two parties back in China," she said.
"It has absolutely nothing to do with our day-to-day operations in WA and it's business as usual for Brownes Dairy."
The announcement has sent shock waves throughout the dairy industry but dairy farmers are hopeful it could provide an opportunity for the company to return to Australian ownership for the first time
Ian Noakes says it would be good to see Brownes back in Australian hands.
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ABC South West WA: Anthony Pancia
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Hopes for local buyer
WAFarmers Dairy Council president Ian Noakes said a state-based buyer would be ideal.
"We see it as a very vital part of the West Australian dairy industry and would definitely not like anything untoward to happen to it," he said.
"There's a lot of dairy processors around Australia [that] have gone out of business in the last couple of years, so you wouldn't think finding a buyer would necessarily be that easy, although I think Brownes appears to be trading reasonably OK, so that might help."
Ross Woodhouse supplied Brownes with more than 21 million litres of milk per year.
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ABC Rural: Jessica Hayes
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Ross Woodhouse operates one of the state's largest dairy farms in Scott River and is Brownes' biggest supplier.
He would prefer the company to return to local ownership but said the highest priority was a buyer that could handle the company competently.
"I don't care who it is really, as long as it's well managed," he said.
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I just want to feel that the company's in good hands, and if it's well managed, then obviously it'll bring opportunities to us and give us security as farmers.
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Future of the dairy
Ms Sarich-Dayton emphasised that the most recent owners had been part of a successful relationship.
"Obviously we would all love to see it return to Australian hands, but I think it's really important to flag that whilst we were owned by the Chinese parent company we had an incredible ownership structure … over the last seven years," she said.
"We are going to have a lot of buyer interest in Brownes Dairy, and I absolutely expect that we will find ourselves a new owner that will invest in growth for our business and absolutely in the West Australian dairy industry."
WA Premier Roger Cook told ABC Radio Perth Brownes Dairy would be attractive to buyers.
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ABC News: Andrew O'Connor
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Speaking on
"Can I just say Brownes Dairy remains a profitable company," he said.
"It continues to provide an important business link for the 50 dairy farmers that provide milk and other products to that to that facility or to that company … so the managers of Brownes Dairy are confident that they will find a new owner because it is a profitable business."
Insolvency expert McGrathNicol has been appointed to manage the sale.
