Parmalat says to stay in Australia after bid loss

MELBOURNE, Sept 3 (Reuters) - Italian dairy group Parmalat SpA's (PLT.MI) Australian unit said on Wednesday it currently plans to remain in the country after missing out on buying rival producer Dairy Farmers.

Dairy Farmers, which is owned by 2,000 farmers, last week agreed to a $780 million takeover by National Foods, the Australian unit of Japanese brewer Kirin Holdings (2503.T).

The deal is expected to begin a long-awaited rationalisation of Australia's A$3.2 billion ($2.7 billion) dairy industry. That would mean existing players such as Parmalat would need to expand to remain competitive. Last Friday, Parmalat officials told investors at a briefing in Milan the company was considering several options for its Australian arm, including exiting the market.

But a spokesman for the Australian unit said it continued to be an important part of the group.

"Parmalat SpA has no current plans to divest its investment in Australia or to exit the Australian market," he said.

He said the firm was reviewing its options amid the dairy industry consolidation, and would continue to review all areas of its business. He declined to elaborate.

Parmalat pulled out of the race for Dairy Farmers last month, saying it had not been able to reach an agreement with its joint bidding partner Murray Goulburn, an Australian farmers' co-operative.

Parmalat Australia, formerly known as Pauls Ltd, was acquired in 1998. It has about 350 farmer suppliers in northern Queensland state and about 160 in southern Victoria state.

Parmalat Australia processes milk under the brand names Pauls, REV and Skinny, and makes Pauls cream and Vaalia yoghurt, soy milk Soy Life and UHT long life milk.

It also exports to southeast Asia and the Pacific. ($1=A$1.17) (Reporting by Victoria Thieberger; editing by Jonathan Standing)