Dairy Prices and Currencies Shape Dairy Top 20

The global top 20 of dairy companies that Rabobank compiles annually has changed significantly, but only to a limited extent due to mergers, acquisitions, and sweeping entrepreneurship. Most changes in the ranking are due to decreased dairy prices and exchange rate fluctuations.

This is indicated by RaboResearch, a part of Rabobank, in the publication of the Global Dairy Top 20 for 2024.

One noticeable aspect is that, despite lower dairy prices in 2023, the revenue of the global number 1, Lactalis, has surpassed the $30 billion mark for the first time. This company, owned by the Besnier family, has a strong growth ambition that has brought it to where it stands now.

Change in positions
Among the other companies, there is also plenty of ambition, but last year at least, this was not reflected in the results. The numbers 2 and 3 of 2023, cooperative Dairy Farmers of America and Swiss food giant Nestlé, have swapped positions this year, partly due to exchange rate fluctuations and changing dairy prices. According to Rabobank, the Swiss company had a dairy turnover of $24.1 billion in 2023, but if its stake in the British ice cream giant Froneri (number 19 on the list) were to be included, it might have been a few billion higher.

Danone has remained stable in the fourth position, although it divested business units last year, especially in Russia.

New Zealand's Fonterra rises three places in the ranking, surpassing Arla, FrieslandCampina, and the Chinese Mengniu. The cause is partly the last half of 2022 (with high dairy prices) still included in Fonterra's books for 2022/23.

Northwest European rivals
The 8th and 9th places are for the Northwest European rivals Arla and FrieslandCampina. Both fell back slightly in the ranking, with a growing difference in revenue. Arla pulled ahead of FrieslandCampina, and Rabobank believes this will continue for the time being, even though FrieslandCampina underwent a major cleanup last year and, in a sense, started again with a clean slate.
The strongest climber on this year's list is Schreiber Foods, which rose from 16th place to 12th. The Irish Glanbia dropped out of the top 20 after exiting a cheese joint venture with Leprino. In its place, the Mexican Grupo Lala makes its entry, partly due to a strong Mexican peso.