By LIAM DANN
Fonterra sees scope for further expansion into Australia this year.
Chief executive Andrew Ferrier said company analysts were scouring the Australian dairy industry for good buys.
Fonterra already has a 50 per cent stake and effective control of Bonlac, Australia's fourth-biggest dairy firm.
It also holds an 18 per cent stake
in National Foods, the No 1 dairy company.
But Ferrier is not worried that further expansion will attract the wrath of Australia's competition watchdog.
"We are not too big yet," he said.
"It isn't just a black-and-white issue of going in and buying one of the companies. You only do that if you think there is sufficient synergies to bring value to your shareholders.
"We have a lot of people analysing Australia, trying to ascertain whether there are opportunities that will create value."
Speculation about the consolidation of the industry across the Tasman has centred on the possible sale of Parmalat Australia following the financial collapse of its Italian parent company.
Both National Foods and Australia's No 2 company, Dairy Farmers, have indicated they would be interested in buying the division.
Parmalat Australia has said it is still trading profitably and is not for sale.
"A number of analysts speculate that they [Parmalat] are going to be forced to sell off assets outside their core European base and so there are vultures all over the world circling and looking for opportunities," Ferrier said.
But any sale of assets was months away and likely to be done in an orderly manner. Fonterra would have time to make decisions as opportunities arose.
Last month, Ferrier said chief financial officer Graham Stuart would move to a newly created position, group director of strategy and growth. He will co-ordinate Fonterra's international expansion efforts but remain acting chief financial officer until a replacement is found.
