The latest Rabobank survey of the world’s largest dairy companies highlights not just the ‘who’s who of dairy’, but also the continuing spate of merger and acquisition activity and the tensions between the past and future of the dairy industry. The top rankings in the list are still largely filled by companies from the developed world, while most of the growth prospects lie beyond OECD boundaries.changing global market dynamics will determine their prospects for survival in coming years.
The majority of the companies in the top-20 have bought other companies or entered joint ventures to strengthen their position during this period. The most significant moves have included: - Nestlé’s acquisition of Pfizer’s nutrition business, to buy improved entry into the rapidly growing infant nutrition sector in emerging markets; - Lactalis’s acquisition of Parmalat, giving them access to several new markets around the world; - FrieslandCampina’s acquisition of Alaska Milk in the Philippines, expanding their foothold in a fast-growing market; - Arla’s proposed merger with Milk Link in the UK, and Milch-Union Hocheifel in Germany, consolidating their Northern European footprint; - Canadian-based Saputo’s acquisition of the US cheese maker DCI to bolster its product portfolio in the US cheese market; - Müller’s acquisition of Robert Wiseman Dairies in the UK and joint venture with PepsiCo in the US to tap into the expanding US yoghurt category.
Rabobank expects to see companies continue to vigorously pursue merger and acquisition targets in the next 12 months as they jostle to position themselves for growth and profit in a changing market environment.
Rory King / Jonathan Goodstone / Fern Hammond / Naomi Lane
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About Rabobank Group and Rabobank Food & Agribusiness Research and Advisory
Rabobank Group is a Netherlands based, international financial services provider operating on the basis of cooperative principles with a predominant focus on providing allfinance services in the domestic market. Internationally the Group's focus is on food and agriculture. In line with its cooperative roots, Rabobank Group is a cooperative bank, comprised of independent local Rabobanks, plus their central organisation Rabobank Nederland and its (international) subsidiaries. The organisation has almost 60,000 employees (fte) worldwide and operates in 48 countries.
Rabobank Group has the highest credit rating of all privately owned banks, awarded by international rating agencies Standard & Poor's, Moody's, Fitch and DBRS. In terms of Tier I capital, the organisation is among the top 30 largest financial institutions in the world. Total assets amount to EUR 665 billion and a net profit amounts to EUR 1.9 billion (2011-I).
Internationally, the Rabobank Group operates specialised entities including De Lage Landen (leasing and vendor financing), Robeco Group (asset management), Rabo Real Estate Group (real estate management).
Rabobank Food & Agribusiness Research and Advisory (FAR) is Rabobank’s global F&A Knowledge Provider. FAR comprises a global team of analysts that continuously accumulates knowledge in major F&A sectors, issues and trends.