Milk in Global Markets

Milk is one of the more attractive growth markets from a long-term perspective, in terms of per capita consumption

Because  co-operatives ensure a large part of the production, the top five players - France’s Danone ) and Lactalis (private), Switzerland’s Nestle ), and China’s Mengniu Dairy Invalid tag asset) and Inner Mongolia Yili Industrial Group (600887:Shanghai) account for less than 20 percent of the retail market for dairy products worldwide

With co-operatives dominating in Northern Europe (Arla in Denmark, FrieslandCampina in the Netherlands), in India and in Australia  with Fonterra, investment opportunities are constrained, especially for Chinese milk companies seeking to diversify and to strengthen their industrial knowhow – next to Australian Burra Foods (Inner Mongolia Fuyuan Farming taking a 79% stake in 2016), listed companies on the New Zealand stock exchange have made noticeable and unusual runs in through March 2018 – A2Milk (NZX:ATM +380%) and Synlait (NZX:SML +130%)