Brownes Dairy to be sold after Chinese backers call in $200m loan

Brownes Dairy, one of Australia’s oldest and Western Australia’s largest milk producers, has been put up for sale following the demand for a $200 million loan repayment by its major lender, China’s Mengniu Dairy Co. Despite being the market leader in Western Australia, selling products such as milk, yoghurt, cheese, and coffee nationally, Brownes Dairy has faced financial challenges that have led to this critical juncture. Established in 1886, the company employs around 300 people and reports annual sales nearing $300 million.

This move comes amidst ongoing merger and acquisition activities in the dairy sector, with major players like New Zealand's Fonterra also engaged in strategic business operations. As McGrathNicol's Keith Crawford oversees the sale procedure under the aegis of a Mengniu subsidiary, Brownes continues to operate normally, according to company representatives. The dairy industry observers watch closely as Brownes Dairy enters this significant phase of transition.