Source: Rabobank
The companies in the top-5 have retained their position since 2007. This highlights both that these companies have been adept at adapting to industry changes and the entrenched position of the world's largest dairy companies.
At number one, Nestlé had an annual dairy turnover of US$ 28 bil. This is almost double Fonterra's equivalent of US$ 15 bil.
The Top 20 includes Chinese giants Yili and Mengniu, who posted strong gains in sales of 14% and 20% respectively. Both companies have been at the centre of joint ventures in China.
Yili recently partnered with Dairy Farmers of America, while Mengniu has entered joint ventures with Whitewave, COFCO and Danone, as well as taking a stake in China Modern Dairy, the largest milk producer in China.
Dairy sales in the OECD is reported to be stagnant. Although the outlook for underlying demand is positive in the coming years, rapid growth rates seen pre-2008 are unlikely to occur.
Sales and profitability growth is therefore likely to be driven by acquisitions and joint ventures. A reported 124 dairy company transactions took place in 2013, the highest Rabobank has recorded since 2007. Last year, the number of transactions totalled 111.
