Rabobank has published a new report listing the top 20 largest dairy companies in the world, ranked by dairy product turnover. The report highlights the ‘who’s who of dairy’ as well as the continuing spate of merger and acquisition activity and tensions between the past and future of the dairy industry.
The report, authored by Rabobank’s Food & Agribusiness Research and Advisory group, shows Nestlé and Danone at the top of the list, which remains dominated by dairy companies in OECD countries: headquarters for 18 of the 20 companies are in the EU, North America, Japan, or New Zealand.
However, the biggest strides up the rankings this year were made by Chinese giants Yili and Mengniu, riding the wave of domestic market sales growth. The report says that in fact most of the growth prospects for dairy companies lie beyond OECD boundaries.
The ability of these companies to respond to changing global market dynamics will determine their prospects for survival and success in coming years. Rabobank expects to see dairy companies continue to vigorously pursue M&A targets in the next 12 months as they jostle to position themselves for growth and profit in a changing market environment.