Dairy consolidation will happen

Dairy consolidation will happen - but between whom?

By: Dean Best - 7 September 2007 16:04

So yet more consolidation looks likely in the European dairy sector.

German dairy group Nordmilch is keen on teaming up with its peers, particularly in cheese. The company joins a lengthening list of dairy firms either seeking partnerships or those that have already jumped into bed together.

A couple of weeks ago, cheese producers Emmi and Ambrosi joined forces in France, where Sodiaal has also teamed up with Entremont Alliance and formed a cheese venture with Bongrain.

Dairy processors are joining forces in the wake of reform of the EU dairy sector – which has helped to push up prices – and rising dairy costs globally.

The dairy sector remains fragmented; according to Euromonitor, the world’s top 12 dairy companies account for just over a fifth of global retail milk sales.

Some industry watchers, including Tetra Pak CEO Dennis Jönsson, believe consolidation in the dairy sector will happen. The signs are it is already beginning to take shape.

Just where do you think dairy consolidation will happen? And who will be involved?