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Posted: Nov 14 2017, 04:46 PM
Group: Featured Blogers
Member No.: 17
Joined: 17-January 12
Rep: 143 pts
WA’s oldest dairy Brownes now in Chinese hands
Tuesday, 14 November 2017 9:40AM
WA’s oldest dairy, Brownes, has been bought by China.
Brownes’ managing director Tony Girgis told staff this morning that the 130-year-old dairy’s current owner, private equity player Archer Capital, had sold the business to a consortium led by Chinese dairy giant Shanghai Ground Food Tech.
Mr Girgis will remain at the company, which employs about 280 people and is WA’s biggest producer of milk and cream and second-biggest producer of yoghurt.
Brownes said the deal “will see Brownes remain an integral part of the WA dairy industry for generations to come, while creating access to emerging overseas markets and the potential for new product development”.
It is understood Shanghai Ground Food Tech, which is publicly listed in China, wants to restart cheese production at Brownes in a bid to meet demand in the Middle Kingdom.
“The consortium was highly attracted to the Brownes Dairy business and operations, its heritage and long history, and the possibilities Brownes offers to grow the Western Australian dairy industry given its strong geographic location on the door step to Asia,” Brownes said.
“The consortium expects Brownes to remain the premier supplier of quality dairy to WA customers and looks forward to continuing to service the domestic WA market.”
Mr Girgis said the deal guaranteed the future of WA’s oldest dairy.
“As it has done for 130 years, Brownes will remain an important part of the WA community and continue to contribute to the sustainability of the local dairy industry,” he said.
“This deal is a significant step in positioning Brownes for growth well into the future and we are excited at the opportunities offered to the business, our suppliers, employees and consumers.
“Not only will we seek to expand into new products such as cheese, but we will also be better positioned to take advantage of export opportunities and promote the WA dairy industry to a much wider audience.
“Day-to-day there will be no disruption to our employees and suppliers and we expect to be able to make more positive announcements in the near future. Furthermore, the decision to retain Brownes’ management provides ongoing structural certainty and is a vote of confidence in the business’s current position and its future direction.”
It is not known how much Shanghai Ground Food tech paid for the company.
Archer bought Brownes in 2011.
Mr Girgis says that the deal guaranteed the future of WA's oldest dairy but do we really have to sell our Aussie companies to overseas concerns in order for them to be viable? I know that local dairies have been under pressure from products sold by Coles and Woolworths but surely there has to be a better way.
"A lie gets halfway around the world before the truth has a chance to get its pants on." - Winston Churchill
Posted: Nov 14 2017, 04:51 PM
Member No.: 3
Joined: 21-July 11
Rep: 65 pts
Yes it is sad Charles. It seems to be happening all too often.
Everybody is Willing:
Some are willing to work, the rest are willing to let them!
The older I get, the better I was.
Posted: Nov 14 2017, 06:21 PM
Member No.: 1
Joined: 20-July 11
Rep: 47 pts
I believe the alleged butter shortage and the giant increase of the price of butter is a direct result of China buying up Australian dairies.
Living In An Elected Dictatorship
Flin's opinions and comments reflect his perception of the facts and not necessarily reality
Posted: Nov 14 2017, 06:45 PM
Group: Active Member
Member No.: 53
Joined: 13-March 12
Rep: 10 pts
That's why people buyor invest in a company, to make a profit from it, our noble leaders haven't yet worked out that that is why foreigners "invest" in Australia. Guess who loses out on the profits?