The Chinese subsidiaries of dairy giant Parmalat have reportedly ceased operation while the troubled Italian company makes a final decision about the unit.

"Our mainland production base in Tianjin has stopped production for two months, and we are conducting an overhaul now while awaiting instructions from Italy," a Parmalat official told AFX-Asia.  

Parmalat's 65% owned joint venture with Nanjing Dairy is also reported to have ceased production, with the Chinese company taking custody of the venture until a final decision regarding the venture is made by Parmalat.

Some of Parmalat's customers have also sought to distance themselves from the scandal-hit company; the Chinese unit of coffee chain Starbucks is believed to have switched to Nestlé for its milk supply, AFX-Asia reported, citing sources.