News: Markets

Rabobank Global Top 20: LACTALIS CLOSE TO No.1

Rabobank’s annual listing of the Global Dairy Top 20 companies shows Lactalis ($21.0bn) narrowing the gap for top spot with Nestlé ($22.1bn) after Nestlé sold their $1.8bn US-based ice cream business, along with other assets (some of which were acquired by Lactalis. The US’s largest dairy co-op, DFA leapfrogged from 6th to 3rd after acquiring previously ranked no.11 Dean Foods in early 2020. Organic growth was not enough to retain Danone’s ranking, and the company slipped to no.4. Asian companies made some major moves in this year’s list. China’s largest dairy company, Yili, moved to no.5, with year-on-year growth of nearly 20%, due in part to acquisition of the NZ-based Westland co-op. China’s second-largest dairy company, Mengnui, rose from no.10 to no.8, on the heels of acquiring Australia-based Bellamy’s and entering into a joint venture with Coca-Cola to sell chilled milk in China. Consolidating key dairy assets by Fonterra and FrieslandCampina resulted in lower year-on-year sales and each slipped two notches in this year’s survey. Likewise, Arla Foods also dropped two spots in the rankings. Co-op members in NZ and Europe are facing greater environmental constraints. Entering the Global Dairy Top 20 this year, from the world’s largest milk-producing country, is India’s Gujarat Co-op, with $5.5bn in 2019, up 17% from the prior year. GCMMF r(Amul) recorded a 17% compound annual growth rate in the past decade although their accounts are limited.