Swiss giant Nestlé has topped agricultural analysts Rabobank’s top 20 list for dairy companies worldwide, according to the bank. The year 2015 was a “difficult year for most, with a strong US dollar and currency volatility, together with low commodity prices, reducing turnovers for most companies,” according to the bank.
The big story in this year’s top 20 list of dairy companies – based on turnover – is the shrinkage of the overall size of the pie. Low dairy commodity prices and currency movements have had a dramatic downward effect on company sales values. In US dollar terms, the top 20 posted combined dairy sales of $194bn in 2015, down 13% YOY. It is indicative of how much the euro has weakened against the US dollar in 2015 that the same collective turnover of the top 20 improved four per cent YOY in euro terms.
While last year’s top three dairy companies remain in place, there has been signifcant jostling for position in the order of the remaining list. While there are no new entrants in the top 10, Dairy Farmers of America, helped by taking full ownership of the DairiConcepts joint venture it previously operated with Fonterra, swapped places, climbing to number four in the list. At the same time, Fonterra, which in 2015 suffered more than most from declining world dairy commodity prices, not only divested its share of DairiConcepts, but also its Australian yogurt and dairy desserts business, to Lactalis/Parmalat.
Overall, the Chinese companies in the list grew at a slower rate in 2015 than in previous years, impacted by the devaluation of the renminbi (3%, compared to 18% last year). Nevertheless, strong growth from Yili (up 8%, the only company in the top 12 to increase turnover in US dollar terms) enabled it to move up towards the top half of the list, to number eight. Mengniu maintains its position at 11, with the acquisition of a majority stake in Burra Foods in Australia still pending.
The post Nestlé tops Rabobank Global Dairy Top 20 appeared first on Dairy Industries International.