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Will Africa be the Next Dairy Region?
July 27, 2016

Africa now emerging as new market for the world’s largest dairy companies. 

The top 20 dairy companies had a difficult year in 2015 according to Rabobank’s Global Dairy Top 2016, because the low commodity prices and the strong dollar reduced turnovers for most companies.

Kevin Bellamy, the Bank’s Global Dairy Strategist says “the big story of this year top 20 dairy companies is the shrinkage of the overall size of the pie based on turnover, as lower dairy commodity prices and currency movements have made a dramatic effect on company sales values.”

In US terms, the top 20 companies posted combined dairy dales of $194 billion in 2015 down 13% year on year, as against a 4% increase in Euro terms, showing how much the Euro has dropped during the period.

As growth in China slowed down, the worlds largest dairy companies started to look for new markets to develop and Africa is now appearing of their horizon.

The large dairy companies only secured three deals in Africa in 2014, with 14 in 2015 and an additional four already in 2016.

Source – Farmjournal.ie

 



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