Parmalat has moved to quell rumours that it is considering exiting the Australian dairy market after its bid for local dairy co-operative Dairy Farmers failed.

 

Last week, National Foods and Warrnambool Cheese & Butter Factory acquired Dairy Farmers in a deal that looks sure to change the landscape of the Australian dairy sector.

 

The rationalisation of the market looks set to place additional competitive pressure on the likes of Parmalat, sparking rumours that the Italian dairy giant could exit the country.

 

However, a spokesperson for Parmalat told just-food that the company intends to remain in Australia.

 

"We are not at all thinking to come out of Australia just now," the spokesperson said. "We will just wait and see how the new equilibrium in the market develops."

 

Parmalat Australia processes milk under Pauls, REV and Skinny brand names. It also manufactures Pauls cream and Vaalia yoghurt, Soy Life soy milk and UHT long life milk.