After having been on the market for many months, Brownes Dairy has been bought from Archer Capital by a Chinese consortium led by dairy giant Shanghai Ground Food Tech.
In a statement released earlier today, Brownes said the deal would create access to emerging overseas markets and increase potential for the development of new products and manufacturing capacities.
WAFarmers Dairy Section President Michael Partridge said it was a significant move that would present greater opportunities for Brownes’ suppliers.
“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.
“Expansion of cheese manufacturing capabilities would be of significant benefit to the state’s dairy industry and provide greater certainty for producers, particularly after what has been a difficult 18 months due to the lack of access into world markets and in balancing the state’s dairy supply.”
Mr Partridge said foreign investment was becoming an important part of the agriculture industry, as more and more foreign buyers take an interest in what the Australian agricultural sector has to offer.
“While some may consider it to be preferred that WA business are locally owned, foreign investment brings in valuable capital that allows for new ideas, innovations and technologies to enter our industry.”