Australian food company Goodman Fielder is still looking to sell its fats and oils business despite Cargill withdrawing its bid for the unit.

Goodman Fielder said there was "strong interest" in the division even after the US agribusiness giant pulled out of the race for the asset.

A spokesperson said Goodman Fielder had prepared for Cargill to decide against a bid. Cargill had told just-food it had withdrawn its bid due to "concerns raised in the market". The decision is the latest twist in the potential sale of the Goodman Fielder unit. In May, Cargill made its second attempt to buy the business after regulators turned down an initial move two years ago.

"Goodman Fielder was always aware of this possibility and prepared a sales process to take account of such an outcome," a spokesperson said. "We have received strong interest from a number of parties and continue to progress the transaction."

The possible sale comes amid a wider restructuring of Goodman Fielder's business as it looks to grow profits after a year of falling earnings.