Italian-owned dairy processor, Parmalat, is planning to buy its milk supplies from National Foods when it takes over the big Dairy Farmers milk plant at Lidcombe in Sydney and starts selling NatFoods’ Pura milk brand across Australia.
Parmalat is acquiring the former Dairy Farmers plant and a basket of other assets owned by National Foods in a $70 million deal following NatFoods’ takeover of the Dairy Farmers Group late last year.
NatFoods was required by the Australian Competition and Consumer Commission (ACCC) to divest itself of two Dairy Farmers milk factories (the other in Adelaide) and various product brands after the merger left it dominating the dairy sector in four States.
The Parmalat acquisition plans, announced two weeks ago, are yet to be approved by the ACCC.
Under the arrangement, NatFoods will be obliged to supply 80 million litres of milk a year to Parmalat’s fresh milk factories in Sydney, Adelaide and Brisbane.
Full story in The Land, June 11.
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