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Agribusiness Handbook: Milk / Dairy Products - FAO

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Table 9: The world’s top dairy companies by turnover, 2007 (billion USD)<br />

Ranking Company Country <strong>Dairy</strong> turnover<br />

1 Nestle Switzerland 23.1<br />

2 Danone France 14<br />

3 Lactalis France 13.2<br />

4 Friesland/Campina Netherlands 12.1<br />

5 <strong>Dairy</strong> Farmers of America United States 11.1<br />

6 Dean Foods United States 10.4<br />

7 Fonterra New Zealand 10.4<br />

8 Arla Foods Denmark/Sweden 8.8<br />

9 Kraft Foods United States 6.4<br />

10 Unilever Netherlands/United Kingdom 6.1<br />

11 Saputo Canada 5<br />

12 Parmalat Italy 4.9<br />

13 Bongrain France 4.7<br />

14 Land o'Lakes United States 4.2<br />

15 Meiji Dairies Japan 4.1<br />

Source: Rabobank International<br />

2.3 Scale of production and size of plants<br />

As companies have sought ever-greater processing efficiencies to compete<br />

effectively in the global market, dairy processing plants have increased in size<br />

and scale. Even so, there is significant variation in size among the major milk<br />

producing areas of the world. In the EU, the largest manufacturing plants tend<br />

to be in the Netherlands, where butter factories each produce about 22,000<br />

tons/year, cheese factories about 25,000 tons/year and powdered milk plants<br />

about 16,000 tons/year. This scale of plant production compares favourably<br />

with the United States, but falls well below the scale of plant in New Zealand,<br />

where butter factories each produce about 35,000 tons/year, cheese factories<br />

about 31,000 tons/year and powdered milk plants a massive 70,000 tons/year.<br />

The size of processing plant production is related to the size of the relevant<br />

market. Thus, New Zealand, which serves the world market, has very large<br />

processing plants. In the EU, the Netherlands is the major exporter, and plant<br />

size reflects this. However, elsewhere in the EU, many plants are smaller,<br />

multipurpose and able to switch from one product line to another as market<br />

conditions demand.<br />

21

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