Osem-Nestlé Israel is mulling an independent entry into Israel’s dairy market.

Group CEO Dan Propper told Globes: “We are thinking of entering the dairy market independent of Strauss and Tnuva, with the idea of being involved in mainstream, not niche, products.”

“If Osem-Nestlé enters Israel’s dairy market, it will own the necessary technology and will not need to cooperate with a dairy company,” Globes reports, adding that Osem and Nestlé considered linking up with a local dairy company in the past. Nestlé had unsuccessful negotiations with Tnuva, while Osem had talks with Tara Agricultural Producers Cooperative Society, which is currently up for sale.

Osem-Nestlé is undertaking a complete restructuring in order to maximise the synergy among the group’s nine companies. Scheduled to be completed by the end of 2003, the restructuring will include establishing a joint trading company and an operating company.

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