By Philippa Stevenson
Australia's biggest dairy cooperative is keen to form transtasman alliances but first wants to dispel any notion that it has entertained offers from the giant Italian company Parmalat.
The chairman of the 5000-farmer, Sydney-based Dairy Farmers Group, Ian Langdon, said Parmalat's moves on his company made him nervous.
However, he
was not raising alliances with NZ as "some sort of defence mechanism" to a Parmalat bid.
"I don't think that is the right way to do business. If we do, or do not do, something with New Zealand it has to be for the right reasons, not for short-term expediency."
Mr Langdon said Dairy Farmers Group had excellent relations with both the New Zealand mega cooperatives, Kiwi and Dairy Group, with which it had "conceptual" discussions.
He did not know where it was headed but "all my gut instincts tell me there are opportunities we should be exploring."
He said the first to grab the initiative would get the greatest rewards.
Dairy Group chief executive Graeme Milne confirmed talks had been held with Dairy Farmers. "The company would not be doing its job if it did not look at all its options," he said.
If one of the local market companies had to be disposed of to allow the creation of a mega-co-op, it could be beneficial to have an Australian tie-up, he said.
Parmalat's offer to merge Dairy Farmers Group with its Australian operating company Pauls has forced Dairy Farmers to delay a vote on its own restructuring plans until September 23.
