At today’s 2nd Processors, People, Planet, Profit conference, IFCN presented a new ranking of the top 20 dairies worldwide. The occasion was the presentation of the Dairy Processor Report 2021, which lists the latest data on the leading dairy processors and builds on a data series that has already existed since 2007. In the last decade, the companies considered, 50% cooperatives and 50% private, of the top 20 have together increased their processing by 50 million tons of milk.
24% of total milk processing worldwide is accounted for by this top 20 group, but there is still no significant concentration, i.e. no dairy dominates the sales markets anywhere.
For each of the companies, the report includes information on EBITDA, cash flow, investments, capital, profit margin and labour costs, as well as on the company’s sustainability performance. The value added of the companies is compared with the average of the company type (eG : private) and also with each other.
The top 20 dairies contribute $109 billion in total value to society, of which $76 billion goes to farmers, $22 billion to employees, $9 billion to owners and $3 billion in taxes to the respective states.
Covid has not greatly affected the profitability of the companies. The companies’ sales and earnings were relatively stable in 2020, but margins ranged from 0.1% to 19% as much as EBIDTA (0.6% to 27%). On average, the EBIDTA of the top 20 dairies is reported at 8.5%. For comparison, the average for the food industry is 12.5% and 7% for retail.
18 of the top 20 dairies (= 90%) want to be neutral by 2050, which is 8 companies more than a year earlier.
The online event was attended by participants from over 60 countries.
