Investment by Gina Rinehart Boosts Western Australia's Dairy Industry

Bannister Downs Dairy, a family-run operation in Western Australia, has become a prominent success story in the region, largely due to substantial investment from Gina Rinehart. In 2014, Rinehart's company, Hancock Prospecting, acquired a 50% stake in the dairy, providing the necessary capital to enhance and modernize its operations.

With Rinehart's backing, the dairy invested $20 million in a state-of-the-art processing facility, allowing it to process milk on-site and supply approximately 600 customers, including major retailers such as Coles, Woolworths, and IGA. This expansion quadrupled milk production and established the dairy as a profitable and notable regional attraction.

Currently, Bannister Downs operates with around 5,000 cattle over 4,850 hectares, producing about 35,000 litres of milk per day. Despite these advancements, the broader Western Australian dairy sector faces challenges, with farmer numbers dwindling to below 100 from 800 in the 1960s, due to deregulation and high operational costs.

Industry experts emphasize that scale and capital are now crucial for survival in Western Australia. Farms may require at least 800 cows to remain viable, demanding multimillion-dollar investments and presenting an advantage to large or billionaire-backed enterprises like Bannister Downs.

Bannister Downs has also focused on automation, food safety, traceability, and premium branding, primarily selling its products within WA and exporting small volumes to Asia. The dairy has received multiple national awards, highlighting the importance of capital and technology for profitability in modern dairy farming.