INTERNATIONAL – Merger and acquisition activity in the global food industry decreased dramatically in 2002 and hit the third lowest mark of total transactions in the past 20 years, according to the USA-based Food Institute.

The institute tracked 416 transactions, a 19% drop on 2001. “Looking at the past two decades, only the recession era of the early nineties saw such few transactions,” observed institute analyst Catherine Pfister.

Figures for the dairy industry in the USA showed that the number of mergers and acquisitions totalled just 11 which, although only down one from 2001, is the lowest number since 1997. In 1998 there were 27.