Rabobank rankings shows Nestlé still tops
The most recent Rabobank dairy industry survey presents a familiar picture. Not only are 18 out of the top 20 the same as the previous year but Nestlé and Danone remain in first and second place. Whilst companies based in OECD countries fill the top of the table, it is clear that there is growth potential outside these boundaries and the dairy industry must respond to these changes in the global market to ensure future success.
The continuing rise of Lactalis as a result of its recent acquisition of Parmalat and Skanemejerier has put the French dairy giant in third position just below Danone. In terms of progression, the Chinese dairy companies Mengniu and Yili have come on in leaps and bounds moving up two and four places respectively. Despite the rise of these Chinese companies, the Global Dairy Top-20 remains largely dominated by companies whose headquarters are located within OECD boundaries.
One of the key challenges facing the dairy industry is that of shifting global dynamics. Rabobank’s January 2012 report Show Me The Money predicts a slowing of growth in the traditional dairy markets over the next five years and an emergence of industry in China, South East Asia, India and Latin America. Dairy companies are working to ensure that they are well placed and are investing in manufacturing overseas in order to thrive in this changing market place.
As a sense of urgency takes hold, there has been a rise in mergers and acquisitions as the market becomes increasingly competitive. Rabobank predicts that this trend will continue as dairy companies fight for a position in this ever-developing global market.
– Reporting by Fiona Cowan