Extended shelf life, plastic packaging, 'complementary protein products' and the need to integrate multiple plants are the forces driving the dairy industry.
According to Food Engineering's 1999 "State Of Manufacturing" report (September, '99), food manufacturing mergers and acquisitions reached record highs every year for the past four years, rising from 184 in 1995 to 250 in 1998. Dramatic consolidation of the dairy industry contributed to these figures during the past two years.
Last year, dairy deals accounted for more than 10% (27) of the total 250. During its fiscal '98, Dean acquired eight regional dairies. Suiza acquired six more dairy firms and major interest in a seventh. Southern Foods Group added three plants; DFA gathered two more co-ops into its herd; Land O'Lakes acquired a co-op, a company and additional brands.