FACTBOX-Global dairy ranking , M&A deals in 2009
July 9 (Reuters) - Turmoil in financial markets over the past year has largely put a freeze on attempts by the world's biggest dairy companies to merge and consolidate, Rabobank said.
With top dairy players facing a slowdown in demand, the Netherlands-based bank said many will be put to the test in 2009/10, and some could even follow in the footsteps of Dairy Farmers of Britain, which collapsed earlier this year.
* Rabobank's annual Top 20 dairy ranking shows New Zealand's Fonterra replacing Dairy Farmers of America in fifth position behind Dutch company FrieslandCampina, France's Lactalis and Danone as well as Switzerland's Nestle, the market leader.
* The bottom half of the ranking is more mobile. Germany's largest dairy company Nordmilch climbed one spot to number 17 thanks to a campaign of domestic consolidation, while Mengniu, the Chinese giant, entered the list in 19th position.
* Rabobank sees Nordmilch ascending as high as tenth place in next year's global ranking if it concludes a merger with Human Milchunion -- likely from an anti-trust perspective given the relatively unconsolidated nature of the German market.
* Lactalis, Arla Foods and Saputo were the year's most active consolidators. Lactalis acquired assets in France, Switzerland and Eastern Europe, while Arla gained a foothold in the Netherlands and Saputo bought two firms in North America.
Read on for the ranking. Companies are listed next to their place last year and their annual turnover in dollars.
# Company Country Dairy turnover
in USD billion,
2008
1. Nestle (NESN.VX) Switzerland 27.2
2. Danone (DANO.PA) France 15.7
3. Lactalis France 13.7
4. FrieslandCampina Netherlands 13.7
5. Fonterra* (7) New Zealand 12.0
6. Dean Foods (6) U.S. 11.8
7. Dairy Farmers of Am. (5) U.S. 10.8
8. Arla Foods Denmark/Sweden 10.1
9. Kraft Foods U.S. 7.5
10. Unilever** Netherlands/UK 6.6
11. Parmalat (12) (PLT.MI) Italy 5.4
12. Saputo (11) Canada 5.3
13. Bongrain France 5.2
14. Meiji Dairies (15) Japan 4.7
15. Morinaga Milk Ind. (16) Japan 4.3
16. Land O' Lakes (14) U.S. 3.7
17. Nordmilch (18) Germany 3.7
18. Schreiber Foods (17) U.S. 3.7
19. Mengniu (new) (2319.HK) China 3.4
20. Muller Germany 3.4
* Figure interpolated from 14 months data
** Estimate Please note: 2008 turnover plus mergers & acquisitions in 2009
Source: Rabobank International 2009
(Reporting by Nick Vinocur, editing by Anthony Barker)
