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Dairy News Russia : 2019 - another difficult year for companies in the dairy industry

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    • Dairy News Russia : 2019 – another difficult year for companies in the dairy industry
Jan, 02, 2020

Véronique Aguera, Gira’s Senior Consultant, recently spoke to Dairynews about the challenging year of 2019 and how the leading dairy companies are adapting in an ambigous and controversial industry.2019 was another difficult year for companies, who managed to increase turnover despite lower commodity prices, adverse weather conditions affecting key export areas, and strong exchange rate fluctuations affecting trade.

Amongst the top 20 leading dairy companies, Chinese holdings Yili and Mengniu showed highest growth. Geographic expansion is no longer focused on emerging markets, as it was in previous years: North America, became the target, with several projects being carried out by European processors. Investments are still focused on cheese: mozzarella production capacities in the USA and the EU alone increased by 350 thousand tons. This fact raises the question of market capacity for the absorption of these additional volumes in the medium term. Mergers and acquisitions continued, but did not make significant changes in the ranking of the largest dairy companies. Of course, the expansion of the non-dairy product portfolio was the main axis of development for companies, including Danone.

Click on this link to read the full article in Russian.

For more details on the dairy industry in Russia, you may contact Véronique Aguera directly on vaguera@girafood.com or at +33 4 50 40 24 00.