Brownes Dairy, a historic dairy company in Western Australia, Australia, is being put up for sale after China’s Mengniu Dairy Co. called in a $200 million loan. The sale, managed by McGrathNicol, comes amid financial strain and increasing consolidation in the global dairy sector.
Brownes Dairy, a heritage-rich dairy company based in Western Australia, Australia, is heading for a sale after its primary lender, China-based Mengniu Dairy Co., demanded the repayment of a $200 million loan. The move places one of the region’s largest milk producers at the center of increasing foreign-financed ownership shifts within the global dairy sector.
Founded in 1886, Brownes Dairy stands as one of Australia’s oldest continuously operating dairy producers. It plays a significant role in Western Australia’s dairy supply chain, employing around 300 people and generating nearly $300 million in annual sales. Its product lineup includes milk, yogurt, cheese, and flavored coffee, distributed across the country.
The sale process is being supervised by Keith Crawford of McGrathNicol, an advisory firm managing the situation under a Mengniu subsidiary. Despite the financial restructuring, Brownes Dairy continues its daily operations without disruption, according to company statements.
This development aligns with broader merger and acquisition trends in the global dairy industry, where companies like New Zealand’s Fonterra are also streamlining their business strategies.
As stakeholders and competitors closely monitor the situation, Brownes Dairy’s potential new ownership could shape the future of dairy manufacturing and supply in the region. The outcome will also influence how foreign investment is navigated within Australia’s sensitive food sectors.
