Glanbia has been ejected from Rabobank’s annual Global Dairy Top 20 report which ranks the financial performance of the world’s biggest dairy companies and co-operatives.
Glanbia, which had only made its debut last year on the list, was pushed out by Mexico’s Grupo Lala, which secured a position in the Global Dairy Top 20 for the first time.
According to Rabobank, Glanbia’s dairy-related revenues declined into 2023 and it was “negatively impacted by the dissolution of its UK and EU cheese joint venture with Leprino Foods”.
But foreign exchange rates also worked to Grupo Lala’s advantage with a strong Mexican peso significantly boosting the company’s performance.
Rabobank
According to Rabobank’s latest research lower milk prices in 2023 compared to stronger values in 2022 were a significant factor in the performance of the companies and co-operatives that made the Top 20 list this year.
The report highlights a “deceleration” in revenue growth linked to lower milk prices in 2023 compared to the robust prices seen in 2022.
“This trend particularly affected European co-operatives, and seven companies worldwide reported lower revenues in their local currencies.
“Despite this, many companies have managed to report stronger profits and margins than in the previous year,” Rabobank detailed.
Top of the list again in 2024 is the French group, Lactalis, which retained the top spot for the third year in a row.
It became the first company ever to exceed US$30 billion in annual dairy-related revenue based on sustained revenue expansion in recent years.
Nestlé came in second on the list and the largest co-op in the United States, Dairy Farmers, dropped to third place mainly due to weaker milk prices compared to a year earlier.
Both Danone – which was forced to divest its Russian business by the Kremlin – and Chinese dairy company, Yili, maintained their respective fourth and fifth positions in Global Dairy Top 20 this year.
According to Rabobank the report outlines a “potential shift” in the industry’s dynamics, with at least two significant deals on the horizon that could reshape the Global Dairy Top 20 rankings.
These are Unilever’s planned divestment of its ice cream business and Fonterra’s decision to offload its consumer businesss.
The bank has also warned that while dairy companies and co-ops may “face calmer inflation” there could be a number of challenges to navigate in the upcoming year including economic growth levels, geopolitical “strife” and foreign exchange developments.
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