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Brownes

OVERALL

Owned
CHN
Rating
Praises, some criticism

Dairy and juice producers

Est 1886. Brownes is the largest buyer of farmgate milk in Western Australia, collecting and processing approximately 40% of the state's milk production. The business operates two manufacturing plants in Balcatta (Perth) and Brunswick and has WA's most extensive chilled distribution network. In 2011 Australian private equity firm Archer Capital acquired Brownes, and sold it to a Chinese consortium led by dairy manufacturer Shanghai Milkground Food Tech in 2017.

Company Ownership

Brownes Foods Operations Pty Ltd   AUS     website      facebook   twitter
  Shanghai Milkground Food Tech Co Ltd   
   owns 100% of Brownes Foods Operations Pty Ltd  
CHN     website         

Dairy, mining and manufacturing

Founded 1988. Primarily involved in dairy, the company is also engaged in mining and manufacturing in China. Acquired WA's Brownes Dairy from Australian private equity firm Archer Capital in Nov 2017. China Mengniu Dairy increased its stake to 23.8% in Dec 2020.

      China Mengniu Dairy Company Ltd   
       owns 24% of Shanghai Milkground Food Tech Co Ltd  
CHN     website   email      

Dairy

One of China's largest dairy product manufacturers. Operates 38 production bases in China and one in New Zealand. Major shareholders include Chinese state-owned COFCO, and European dairy giant Arla. Danone sold its 10% stake in 2021. Became a player in Australia's dairy industry after acquiring Burra Foods in 2016 and Bellamy's Organic in 2019.

> About the Ratings

Company Assessment

PRAISE CRITICISM INFORMATION
Brownes Foods Operations Pty Ltd
Environment Australian Packaging Covenant signatory
Signatory to the Australian Packaging Covenant, a voluntary agreement to encourage waste minimisation.
Source: Australian Packaging Covenant (2020)
Environment Fined for pollution
In 2014 this company was fined $100,000 by the Bunbury Magistrates Court over a major milk spill from its Brunswick processing facility into a nearby waterway in November 2011. 140,000 litres of milk spilt from a silo resulting in fish deaths and creek water not being able to be used for 4 weeks. The company spent $387,000 on cleaning up and admitted not conducting recommended maintenance checks.
Source: ABC (2014)
Business Ethics Contract penalties
The Australian Consumer and Competition Commission (ACCC) will scrutinise very carefully new contracts being issued by this company to their milk suppliers. The new contracts carry penalties for undersupplying milk. This is 12 months after the company refused to renew 4 supplier contracts due to oversupply and some farmers claimed that they were intimidated.
Source: ABC (2017)
Business Ethics Unfair milk supply agreements
This company was one of five major dairy processors that agreed to amend its milk supply agreements after The Australian Competition and Consumer Commission (ACCC) found them to be unfair. The ACCC said it had raised concerns with some processors about lengthy notice periods for farmers to terminate their contracts, one-sided termination rights, broad indemnities, and terms that restrict a farmer's ability to lease a farm or sell their cattle.
Source: ACCC (2018)
Business Ethics Fined for Dairy Code breaches
In 2021 this company paid penalties totalling $22,200 after the ACCC issued it with two infringement notices for allegedly failing to comply with the Dairy Code of Conduct last year. The Dairy Code requires most dairy processors to publish on their websites, on 1 June each year, standard form milk supply agreements to cover all the circumstances in which they intend to purchase milk in the coming financial year on their websites. This allows farmers to compare processors' minimum prices and contract terms. Brownes Dairy published two supply agreements in 2020 that were allegedly non-compliant with the Code.
Source: ACCC (2021)
Shanghai Milkground Food Tech Co Ltd
Business Ethics Part owned by China Mengniu Dairy
This company is 23.8% owned by China Mengniu Dairy, who have a Shop Ethical rating of 'F'.
Source: company website (2021)

> About the Icons

Company Details

Type Wholly-owned subsidiary
Founded 1886
Employees 280 (2017)

Contact Details

Address 22 Geddes St, Balcatta, WA, 6021, Australia
Freecall 1800 675 484
Website www.brownesdairy.com.au

Products / Brands

Brownes
Brownes Yoghurt
Brownes Milk
Brownes Flavoured Milk
Brownes Juice & Fruit Drinks
Chill Flavoured Milk


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