Rabobank Global Dairy Top 20: Big shifts brewing amid M&A activity

Eight companies traded places across the 2025 Global Dairy Top 20, but there were no new entrants and none of the biggest players dropped out of this year’s list. However, significant shifts are on the cards for 2026 as the likes of Unilver, DMK and Fonterra are yet to complete pending merger and divestment activities. The five largest companies based on dairy sales remained the same this year, with Lactalis, Nestlé and Dairy Farmers of America occupying the top 3 spots followed by Danone and Yili. Arla traded places with Fonterra in 6th and 7th respectively, but the New Zealand major – which recently agreed to sell its global consumer and associated businesses to Lactalis – is expected to drop to 10th next year once the deal completes. “Lactalis’ appetite for acquisition appears insatiable,” RaboResearch reports, adding that the French multi-national could increase its lead at the top by $10bn in the future, particularly in the face of weak competition from second-placed Nestlé. The Swiss major ‘continues to face challenges in its dairy segment’ according to Rabobank, with flat sales at around $24bn (€22bn) for the third year running. “Its two dairy-related divisions (milk products & ice cream and nutrition & health science) reported declining turnover across Europe, North America, Asia, and Latin America,” the bank’s dairy analysts found. “According to Nestlé’s annual report, only China and Taiwan showed growth, specifically in the nutrition & health science segment.” There were no major shifts to the positions of Northwestern European co-ops such as Arla Foods and FrieslandCampina, though DMK – which announced plans to merge with Arla Foods – saw a revenue drop of 6.7% following large-scale producers exiting the co-op and less milk processed as a result. Sodiaal, which acquired Yoplait Canada from General Mills, may boost its position in the rankings next year. Meanwhile, Savencia rose in the rankings after completing the acquisition of Argentina-based dairy firm Williner and adding around €295m ($344m) to its turnover. And Danone completed strategic divestments such as the sale of Horizon Organic while maintaining growth in its dairy segment and boosting its turnover by 4%. Swiss dairy major Emmi Group is among the companies that could enter Rabobank’s list next year. The maker of Emmi Café Latte could take the spot of DMK and very nearly entered 2025’s rankings after generating a turnover of $5.4bn. Rabobank points out that favorable currency trends and high Swiss milk price could propel the company further next year. Meanwhile, Arla is expected to challenge Danone in 4th if the merger with DMK is finalized as expected; and FrieslandCampina could go in 6th on the back of its deal with Milcobel.

Rabobank Global Dairy Top 20: Big shifts brewing amid M&A activity

Rabobank’s annual list has few surprises this year but pending M&A activity may spell major changes in 2026

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