French company leapfrogs Fonterra in dairy standings
New Zealand dairy giant slips down the rankings of global dairy companies.
French company Lactalis has leap-frogged New Zealand dairy giant Fonterra to become the world's third-largest dairy company.
Swiss-based Nestle ($US25.9 billion) and French company Danone ($US19.5 billion) head Rabobank's latest survey of the world's largest dairy companies, which is ranked by turnover.
Lactalis's 2011 turnover was $US18.8 billion, well ahead of Fonterra's $US15.7 billion, which means it moves up a spot this year to third.
The survey says Lactalis's continued rise came through ongoing sales growth and the acquisition of companies Parmalat and Skanemejerier – and it is now within striking distance of French competitor Danone.
Eighteen of the top 20 companies are from developed countries, including five, including Kraft Foods, from the United States. The other two are from China.
The Rabobank report notes 15 of the top 20 companies have investments in China, as they faced slowing growth in traditional dairy markets.
Market trends have accelerated mergers and acquisitions, the report says, adding: "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."
NBR staff
Wed, 18 Jul 2012
Wed, 18 Jul 2012
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French company leapfrogs Fonterra in dairy standings
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