Californian behemoth Dole Food Co., the world's largest fruit supplier, has made public its intention to sever all capital and business ties with Japan's scandal-ridden dairy giant Snow Brand Milk Products Co (SBMP).

Dole and SBMP jointly established the Snow Dole Co in 1989 with the brief of developing new products, researching the market and managing trademark rights on new products, such as Dole's ice cream and cheese.

However, Dole is reluctant to be associated with SBMP following a string of scandals that have rocked consumer confidence in the firm.

In order to reconstruct itself and rebuild its brand, SBMP had planned a ¥30bn (US$227.7m) capital increase, but this could be affected by Dole's withdrawal, as it was thought that the US company would underwrite the increase.