February 18, 2014

Australia's Parmalat plans to sell dairy products in New Zealand

Australian dairy company Parmalat is talking with owners of New Zealand's Countdown supermarkets to stock its dairy products, in direct competition with local suppliers.

More Australian-made yoghurt and custard products could soon be hitting New Zealand supermarket shelves. Progressive Enterprises has informed that Parmalat is approaching New Zealand retailers about selling its dairy product range there.

Federated Farmers dairy chairperson Willy Leferink is questioning the timing of that news.

"You don't know what the real motivation is," he says. "It's probably a motivation from the supermarket to give an indication that there is somebody else out there we can buy our foodstuffs from and give an indication to Goodman Fielder and Fonterra that there's somebody else they can do trade with."

Progressive Enterprises is running an aggressive But Aussie campaign in Australia, and dumping Kiwi products. It is also facing a Commerce Commission inquiry into claims by Labour's Shane Jones that it's demanding retrospective payments from suppliers.

Countdown's owners refute claims the supermarket is gearing up to sell its own fresh milk.