Many German dairy companies are expecting to be affected by the scandal involving Parmalat, the Italian food group. In particular, companies in the south of Germany are expected to be affected. These include Milchwerke Jager GmbH & Co. KG, Sachsenmilch and Molkerei Alois Muller GmbH & Co.
The association for the German milk industry (MIV) has said that any losses incurred by German businesses will not threaten the future of the companies. It is reported that, in most cases, the companies are protected by credit insurance. In total, it is estimated that German dairy companies could lose around Ђ10m as a result of the scandal.
Italy was the most important country for exports from German dairies in 2003. In total 1.2 million tonnes of milk and cream were exported to Italy last year. Around 20 per cent of these exports are said to have gone to Parmalat.
Source: Handelsblatt
