A US bankruptcy judge has approved the sale of Agway's Country Products business to Del Monte Fresh Produce for US$12.15m.

Agricultural cooperative Agway said Del Monte had outbid AMPCO Distribution Services, which had previously made a tentative agreement to purchase Agway's food division for $8.3m, reported Dow Jones International News.

Agway's Country Products Group, which includes Country Best Produce, packages and distributes potatoes, onions and other produce to US chain stores.

Agway filed for Chapter 11 bankruptcy protection in October 2002.