Longwarry exports 80 per cent of its product and specialises in milk powders, cream cheese and UHT milk.
The purchase means French-owned Parmalat will control between 10-12 per cent of the milk produced in Australia.
Managing director of Longwarry, Rakesh Aggarwal, had to borrow money from friends to buy a mothballed dairy factory in 2001.
He has now sold it for $67 million to become the cornerstone of a new export focus for Parmalat Australia.
«The dairy industry is going through a phase of rapid growth.
«It’s no longer milk – it’s white gold.»
President of Australian Dairy Farmers, Noel Campbell, says consolidation is needed in the dairy indsutry and this looks like a good deal.
It is subject to Foreign Investment Review Board (FIRB) approval.
Source: ABC