Lactalis, the French dairy giant, has dismissed rumours that Italian subsidiary Galbani is involved in the rotten cheese scandal that has rocked Italy.

Galbani has been accused of being among a number of companies that sold cheese recycled from rotten produce.

According to an Italian police investigation reported by the local press, some 40 dairy firms used 11,000 tonnes of rotten or out-of-date cheese, mixed them with fresh products and sold them on through companies run by a Sicilian businessman.

Galbani has been implicated in the investigation, reports said, but Lactalis issued a statement from its Italian subsidiary insisting it had "nothing to do" with the alleged scandal.

"The group has nothing to do with the alleged accusations moved to cheese fraud [and] Galbani's products do not contain any ingredients acquired from these companies," the statement read.