As a full-line dairy concern, Amul can market related products simultaneously, bringing down its distribution costs.
Stung by criticism over milk scarcity, the government eased price controls for milk and recently took over a large dairy concern, Lácteos Los Andes, directing it to reduce yogurt production and raise milk output.
Consider a recent flap involving Citigroup and Parmalat, the tarnished Italian dairy concern.
Mendez, who took over at Juan Valdez three years ago after heading Alpina, Colombia's leading dairy concern and a highly successful exporter, said the company does not have the capital to continue to grow internationally by financing new locations on its own.
Despite the Harper government's determination to conclude as many trade deals as possible, the dairy farmers' concerns seem to have had a big impact on Canada's negotiating position.
Officials also tried to tamp down anxiety from dairy farmers concerned about bad press.
The milk received by the dairy plant concerned in this study was classified in three quality categories in 1998: A/superior class with less than 415,000 cells/ml, B/first class with less than 521,000 cells/ml, and C/second class with less than 770,000 cells/ml.
Officials involved in the talks said the dairy industry's concerns were addressed in the deal.
Selling the extra dairies should ease concerns that the combined company would have too strong a hold on dairy sales in certain parts of the country, the companies said.
