Global dairy products industry continues to be one of the most dynamic markets worldwide. The global dairy industry was affected by the global economic downturn, changing weather conditions in export countries, and varying feed and other input costs. The global recession made a negative impact on the affordability as well as demand for dairy products, changing consumer behavior across many markets worldwide. However, demand began to recover in the latter part of the year and the industry began to witness growth in early 2010. Region-wise, North America and European regions are mature dairy products markets, while Asia-Pacific and Latin America are the fastest growing markets for dairy products. Europe is the worldwide leader for processed dairy products, such as yogurt, cheese, butter and yellow fats category.

The global dairy industry has become highly volatile over the past few years, with prices experiencing sharper and shorter swings. The situation is expected to remain the same in the next few years as well, posing a challenge to the global industry. One of the key reasons for such volatility is the lower amount of annual milk production being traded between the countries. Resultantly, any small change to the supply-demand situation would incite fluctuations in the global dairy commodity prices.

High competition and high market fragmentation is leading to increased consolidation in the dairy industry. Larger dairies are taking over smaller dairies that are facing problem in operations. Moreover, companies are increasingly going for mergers and tie-ups to remain competitive in the market. Major factors driving mergers and acquisitions in the dairy sector include the drive to enhance economies of scale, increasing profit levels, and reducing overheads. The consolidation trend is more pronounced in Europe. The dairy industry, being highly fragmented, comprises large MNCs as well as small but significant players. With an increase in the concentration of the industry, there is a trend towards increasing brand value, market share, and international presence and acceptance. In a highly competitive scenario, companies need to brace themselves for pro-active business policies.

The research report titled “Dairy Products: A Global Outlook” announced by Global Industry Analysts, Inc., provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a rudimentary overview of the industry, highlights latest trends and demand drivers, in addition to providing statistical insights. Regional markets briefly abstracted and covered include US, Canada, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe) Asia-Pacific, Latin America, and Rest of World. The report offers a compilation of recent mergers, acquisitions, and strategic corporate developments. Also included is an indexed, easy-to-refer, fact-finder directory, listing the addresses, and contact details of companies worldwide.

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