Staff redundancies at Brownes Dairy due to increased costs

Milk from Perth is now appearing in Victorian supermarkets — but that doesn’t mean it’s peaches and cream in the west.

Western Australia’s biggest dairy processor has made staff redundant, with its management saying branded milk is “feeling the pinch.”

Brownes Dairy confirmed the staff and associated cutbacks was linked to cost-cutting by consumers, despite the West Australian farmgate figure sitting at the lowest price-point nationwide.

Brownes chief executive Natalie Sarich-Dayton said fewer than 30 staff were made redundant but acknowledged the processor would have to engage in an economy drive.

She told Perth radio that cost-of-living pressures meant fewer West Australians were buying branded milk than a year ago.

“Expenses are increasing everywhere,” Ms Sarich-Dayton said.

“Families are hurting, business are also feeling it. Brownes prides itself on selling affordable products to families and with the cost-of-living crisis,”

Brownes currently sells its two litre brand milk at $4.00, while Western Australian competitor Harvey Fresh sells is two litre bottles for $4.50.

However, Woolworths currently sells its two litre milk cartons at $3.10 and Aldi at $3.09 for its Farmdale range.

Brownes Milk has cut staff at its WA processing facility.

“The immediate decision for families is where they can save money today. When they go into the supermarket, that is where they make the decisions,” Ms Sarich-Dayton said.

“Unfortunately, branded products do feel the pinch in times like this.

“(Processors) are paying more for power, more for milk, more for labour, more for petrol.”

Australian Dairy Products Federation executive director Janine Waller said all processors were struggling with rising cost pressures.

“These pressures are evident with the closure of eight dairy processing businesses in the past 12 months, including four closing since the beginning of this financial year – and Browne’s Dairy have had to unfortunately announce staff redundancies,” she said.

“The anticipated rate rise by the Reserve Bank will only contribute to these pressures.”

The round of redundancies comes as Brownes milk cartons made a surprise appearance on Victorian supermarket shelves in the past fortnight.

The WA-sourced milk rarely travels eastwards across the Nullarbor but featured in Melbourne supermarket refrigerators to cover shortages associated with the recent strikes at Victorian factories operated Fonterra, Lactalis, Peters and Saputo.

The four Victorian processors resolved their industrial stand-off with the United Workers Union late last month.

Ms Waller said consistent and complementary government policy was also needed to maintain a strong dairy processing sector.

“On the one hand, the Federal Government is focused on bolstering local manufacturing and food security,” she said.

“But on the other, they are planning adverse changes to water policy which would have dire effects – directly on dairy processors’ businesses, but also on the regional communities in which they operate and employ over 6800 workers.”