Chinese firm Shanghai Ground Food Tech has purchased the 130-year-old Western Australian dairy company, Brownes Dairy.
Brownes said in a statement that 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.
Under the terms of sale, Brownes will retain its current management, including Managing Director Tony Girgis whose decision to lead the business going forward was important to both parties.
Girgis said today’s announcement was a defining moment for the future of WA’s oldest dairy as it looked to continue producing some of the highest quality dairy products anywhere in the world.
“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,” Girgis 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.”
Girgis said the deal would pave the way for Brownes to develop new product lines and access emerging export markets, particularly in Asia.
WAFarmers Dairy Section President Michael Partridge welcomed the purchase.
“The new owner is a Chinese company that has experience in operating dairy businesses in China,” he said.
“It is hoped this understanding will gain the WA dairy industry greater access to markets in China and hopefully other Asian countries moving forward, which can only be embraced as a positive move, particularly if local manufacturing capacities are also developed.