Dairy co-operative Fonterra has been named the sixth-largest dairy company in the world for the third consecutive year, according to a Rabobank report.
File photo. Photo: Photo / AFP
The agribusiness bank's latest Global Dairy Top 20 report said Fonterra's sales for 2021 totalled US$14.8 billion, up by $1.2b on the previous year.
Rabobank senior agri-analyst Emma Higgins said the co-op completed the sale of its two wholly-owned China farming hubs in 2021.
"Despite the sales of its Chinese hubs, greater China remains an important market for Fonterra - particularly for foodservice sales - as do other countries in the broader Asia Pacific region," she said.
"The company's disposal of DPA Brazil and Soprole, along with potential changes in the Australian-based business, are still pending."
Higgens said Fonterra's annual results for the 2022 financial year will be announced next month.
Privately-held French Dairy Company Lactalis topped the list as the world's largest dairy company, according to the Rabobank report.
The report found Lactilis' turnover rose to $26.7b in 2021, an increase of $4.7b or 16.2 percent on the prior year.
Lactalis now sits well clear of second-placed Nestlé, from Switzerland, which recorded a turnover of $21.3b during the same period.
Higgins said Lactalis' double-digit percentage sales growth was driven by the acquisition of KraftHeinz's US natural cheese business and Groupe Bel's Royal Bel Leerdammer, Bel Italia, Bel Deutschland, and Bel Shostka Ukraine, with these purchases adding a combined estimated annual turnover of about $2.1b.
"This acquisition spree has continued into 2022 with the recent purchases of Australian-based Jalna Dairy Foods and German-based Bayerische Milchindustrie's (BMI) Fresh Dairy Division," she said.
The report said the combined 2021 turnover of the Global Dairy Top 20 companies jumped by 9.2 percent in US dollar terms, following the prior year's modest decline of 0.1 percent.
"Supported by the recovery in foodservice channels after the initial Covid pandemic and continued strong retail channel sales, global dairy demand firmed during the course of
2021," Higgens said.
"And this, combined with lower-than-anticipated milk production growth in the main exporting regions and exceptionally strong Chinese import demand, saw dairy product prices rally to elevated levels."