Analysts are forecasting that net profits for 2001 at Australian dairy group NatFoods will fall by at least 10% on the A$52.1m (US$27.38) posted in 2000. Apparently, the predominant reason for the drop has been NatFoods' inability to acquire or merge with a competitor. The outlook for rationalisation within the industry is bleak, according to analysts, and the pressure is on to form alliances in the light of price rises and the future activities of the newly formed NZ Dairy Board,