America’s largest food group, Kraft Foods Inc, has agreed to sell its Brazilian dairy business to Italian food producer Parmalat Finanziaria SpA

Kraft’s Pilar pasta and biscuit business in Brazil will also be subject to a buyout by two undisclosed privately held companies in the country, as part of a Latin American restructuring programme that will include three plant closures and 500 job cuts.

By Monica Dobie, correspondent