The Kiwi Giant’s Position Dips in the Rabobank Top 20 as Global Players Grow and Acquisitions Reshape the Industry.
Fonterra has slipped to seventh place in RaboResearch’s annual Global Dairy Top 20, a report that ranks the world’s leading dairy companies by financial turnover. The New Zealand cooperative’s 2024 turnover was reported at USD$14.7 billion, a result that saw it drop one spot. The article notes that this ranking is likely to fall even further to tenth place if its proposed sale of its consumer business to French giant Lactalis is finalized, a move that would fundamentally alter Fonterra’s financial and strategic position.
The top ranks of the list remain dominated by major international players. Lactalis retained its number one spot with an estimated USD$31.9 billion in revenue, cementing its lead through an “insatiable appetite for acquisition.” Switzerland’s Nestlé and the United States’ Dairy Farmers of America held onto their second and third positions, respectively. These rankings reflect the powerful influence of diversified portfolios and strategic acquisitions in shaping the global agribusiness landscape.
Notably, other global giants saw significant movement on the list. Denmark’s Arla Foods climbed to sixth place, while Canada’s Saputo recorded the strongest year-on-year revenue growth of all companies on the list. Saputo’s revenue increased to USD$13.9 billion, moving it into the ninth spot and highlighting the effectiveness of its growth strategy. The overall combined turnover for the Global Top 20 showed a modest increase of 0.6%, with a similar growth projection for the coming year.
The report by RaboResearch suggests that future rankings will be heavily influenced by ongoing mergers and acquisitions, currency fluctuations, and regional milk price dynamics. The article points out that there are significant differences in milk prices between major regions like China, Europe, and the U.S., which directly impacts the revenue and ranking of companies operating in those markets. This highlights the complex and interconnected nature of global dairy economics.
For the international dairy community, Fonterra’s slip is a key data point that underscores the intense competition and constant consolidation happening across the sector. It demonstrates how a company’s strategic decisions—whether to acquire or to sell—can have a profound impact on its market standing. The continued dominance of acquisition-focused companies like Lactalis signals a trend toward larger, more globally integrated players shaping the future of the dairy industry.
Source: Farmers Weekly, “Fonterra slips to seventh on global dairy top 20”
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇺🇸 eDairy News INGLÊS: https://whatsapp.com/channel/0029VaKsjzGDTkJyIN6hcP1K
