Dairy Farmers managing director Calvin Boyle said any initial public offering would be at least a year away, with the timing dependent on the strength of the dairy market and the Sydney-based company's capital needs.
Dairy Farmers, Australia's second-largest milk processor, said last month it plans to trade its shares on
the Australian Stock Exchange under a proposal that would better enable the 103- year-old co-operative to raise capital.
"We probably don't see it happening for a year or two, maybe even three," Boyle said. "It will depend on the market and the needs of the business."
The maker of Ski yogurt and Coon cheese has twice failed to win approval from its farmers to change its ownership structure.
The last attempt was in June 2001.
Dairy Farmers' 3700 farmer-members will vote on the proposal next year after the company details its plan to milk suppliers during the next few months.
The proposal needs the approval of at least 75 per cent of votes cast in a postal ballot.
Dairy Farmers, which competes with National Foods and Parmalat Finanziaria's Pauls unit in supplying grocery chains with fresh milk, reported a 93 per cent plunge in net profit in the year ended June 30.
"I can't see any positive news for next year," Boyle said.
Meantime, Boyle said the company is "interested and we're watching" developments with Milan-based Parmalat, after National Foods said yesterday it would bid for the Italian company's Australian assets should they be offered for sale.
Shares of Parmalat, the world's seventh-biggest dairy company by sales, lost about half their value last week after the company had its credit rating cut twice in two days.
"Our position is that it's still hypothetical," Boyle said.
"We don't know whether the assets are up for sale."
He said other potential bidders could include Auckland-based Fonterra Co-operative Group, the world's biggest dairy exporter, and Graeme Hart, New Zealand's richest man, who controls New Zealand Dairy Foods Holdings.
