Manufacturing News
TECH FLASH

Growth of dairy industry dependent on acquisitions

Annual report from the Rabobank Group ranks the world’s top 20 dairy producers

Pediatricians say pregnant women and children should not drink raw milkWith challenging conditions and weak economies damaging sales growth in key markets for the dairy industry, the latest annual Rabobank survey suggests dairy giants will need to acquire or merge with more companies to sustain growth rates as big deals become harder to come by.

Rabobank Group, a wholesale and retail banking provider, says 2013 was a challenging year for dairy companies, which saw stagnant sales volumes. By contrast, in 2013, there were 124 dairy transactions, the highest since 2007.

The bank’s Global Dairy Top 20 report ranks the world’s top dairy producers.

“Once again, giants Nestlé, Danone and Lactalis [numbers 1, 2 and 3 respectively] top the list, showing the world’s largest dairy companies are reasonably entrenched,” says Tim Hunt, Rabobank analyst. “We continue to see some companies outperform their peers in sheer growth terms. In particular, the Chinese giants Yili and Mengniu, which saw their sales expand by 14 percent and 20 percent respectively, with Yili entering the top 10 for the first time ever.”

Canadian company Saputo continued to climb the list into eighth place, up one spot from last year’s survey, in part because of several recent acquisitions. Japan’s Meiji and Morinaga slipped down the list largely because of the sharp decline in the value of the yen, according to Rabobank.

Fonterra took the fourth spot, followed by FrieslandCampina, Dairy Farmers of America, Arla Foods, Saputo, Dean Foods and Yili to round out the top 10.

Rabobank says while underlying growth will pick up in coming years, many markets will not return to the rapid growth rates seen before 2008. Because of this, mergers, acquisitions and joint ventures will remain key avenues to growth and profitability.

Did you enjoy this article? Click here to subscribe to Food Engineering Magazine.

Recent Articles by Jeremy Gerrard

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Food Engineering's Food Automation & Manufacturing Conference and Expo 2015

Images from Food Engineering's Food Automation & Manufacturing Conference and Expo in Clearwater Beach, Florida, April 12-15, 2015. The event brought food and beverage processors and suppliers together to gain valuable information on the latest trends and technologies in manufacturing, automation, sustainability and food safety.

Podcasts

Burns & McDonnell project manager RJ Hope and senior project engineer Justin Hamilton discuss the distinctions between Food Safety and Food Defense as well as the implications for food manufacturers of the Food Safety Modernization Act.
More Podcasts

Food Engineering

Food Engineering May 2015 Cover

2015 May

The May 2015 issue of Food Engineering explores effective tools for hitting manufacturing targets. Also, read how processors are looking for faster ways to detect harmful pathogens in food and beverages without sacrificing accuracy or reliability.

Table Of Contents Subscribe

Plant Facility/Site Issues

What issue about your current plant facility/site keeps you up the most at night?
View Results Poll Archive

THE FOOD ENGINEERING STORE

Food-Authentication-Flyer-(.gif
Food Authentication Using Bioorganic Molecules

This text provides critical tools and data needed to augment routine food analysis and enhance food safety by aiding in the detection of counterfeit, and potentially deleterious, foods.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

FE recent tweets

facebook_40.pngtwitter_40px.pngyoutube_40px.png linkedin_40px.pngGoogle +

Food Master

Food Engineering Food Master 2015Food Master 2015 is now available!

Where the buying process begins in the food and beverage manufacturing market. 

Visit www.foodmaster.com to learn more.