Acquisition adds to top dairy companies

The largest dairy companies in the world have become larger due to acquisitions, according to UK-based Leatherhead Food International. Nestle topped the list with total turnover of €14.8bn.

The study showed that of the 34 companies profiled, 22 completed merger and acquisiton deals in 2003, with 19 in 2004, 16 in 2005 and seven so far in 2006. Most of these deals were across the border as all of them operate in more than one country.

Nestle of Switzerland still holds top slot with a total turnover of $18.7bn (€14.8bn) in 2005, with the US-based Dean Food trailing behind at $10.5bn (€8.3bn), along with Danone (€7.1bn), Dairy Farmers of America (€7bn) and Fonterra (€6.9bn). Other companies with turnover of over $5bn (€3.9bn) include Lactalis, Arla Foods, Unilever, Kraft Foods and Friesland Foods.The report also notes that key trends in the dairy industry continue to be value-added dairy products in place of commodities, with the introduction of healthy ingredients or more convenient formats.
Contact LFI at www.leatherheadfood.com for further information.