Nestlé and Danone tops in Rabobank rankings
Nestle and Danone remain the two largest companies in the most recent rankings of dairy companies published by Rabobank, the agricultural banking analysts. Their dairy businesses last year made turnover of $28bn (EUR19.6bn) and $16.4bn (EUR11.5bn) respectively.
However, New Zealand dairy group Fonterra at number three has overtaken Lactalis (4) and FrieslandCampina (5) by garnering $12.1bn (EUR8.48bn) from its dairy operations in 2010, according to Rabobank. Rabobank notes high commodity prices in 2010 had favoured companies with strong exposure to commodity markets, over those active mainly in retail markets.
Further down the rankings saw some new faces. DMK, the new company created from the merger of Nordmilch and Humana Milchunion, entered the top 20 at 13 with an estimated turnover of $5.3bn. Sodiaal, one place lower, was another new entrant, following the conclusion of its merger with Entremont. Rabobank says it expects further large M&A deals, particularly in Germany, where consolidation was been limited in the past.
The leading European processors – Lactalis, FrieslandCampina and Arla Foods (ranked 8) – were increasingly going head-to-head to “achieve market dominance,” the report notes. That being said, Lactalis remains on the acquisition path, and the survey points out that if the French dairy giant manages to acquire Parmalat in 2011, it will return Lactalis to the number two position in rankings next year.