The Department of Justice is keeping an eye on the possible sale of Parmalat USA and any side-effects such a sale could have on the New York milk market

Food & Drink Weekly, May 17, 2004

The Department of Justice is keeping an eye on the possible sale of Parmalat USA and any side-effects such a sale could have on the New York milk market. The Italian dairy and juice conglomerate is trying to sell off its U.S. operations after an accounting scandal that included the disclosure that the company did not have nearly $5 billion previously claimed in a bank account.

Assistant Attorney General William Moschella responded to a request from Sen. Charles Schumer (D-NY) seeking close monitoring or the possible sale of two New York-area milk bottling plants. Schumer warned a possible sale of the plants to one of Parmalat's chief competitors, including Dallas-based Dean Foods, Inc., could spell trouble for both milk consumers in New York City and dairy farmers upstate. Schumer had argued that such a sale of the plants to Dean Foods would mean a single company would control close to 90% of the downstate milk market. The metropolitan area has millions of customers and massive school districts that buy large quantities of milk.