While most people believe the dairy protein market is small, mature and boring, the reality is far different.
Dairy, currently the largest segment of the global animal protein market, is estimated to reach a production value of more than USD $354 billion in 2014, according to a September 2014 report fromAmadee+Company. The global animal protein production value (overall) is estimated at USD $1.35 trillion in 2014.
Proteins are essential nutrients for the human body. They are one of the building blocks of body tissue and can also serve as a fuel source. The long-term thesis supporting the market for protein is hard to ignore: more people equals more mouths to feed, while the shift in diets, notably among emerging markets, will drive increased demand for protein of all types. This implies a substantial revenue opportunity for those facilitating the procurement, trading, storage and transportation of protein products.
Topics covered in Amadee+Company’s report include global protein production by class and type, dairy production by type and region, dairy retail sales, exports, imports, foreign markets, the feed outlook, alfalfa production, yogurt demand and the Chinese infant milk formula market, among others. Analyses and forecasts cover the scope of 2014 to 2019.
The report also contains detailed analysis of the major dairy market players in terms of their product offerings, markets served, strategies, competitors and financial performance. In addition to detailed profiles of 34 public companies involved in the dairy industry, the report also contains 78 tables and 125 figures.
Other insights revealed in the report include:
• The United States, which is the largest dairy producer in the world, has gone from being a net importer to net exporter of dairy products, and exports as a percentage of production has hit an all-time high. The United States now has a unique opportunity to become a major world player in dairy exports.
• U.S. dairy exports to China grew from USD $22 million in 2000 to USD $327 million in the first half of 2014.
• Higher milk prices and lower feed costs provide margin strength for renewed investment and a willingness for increased discretionary spending on dairy farms. Improved profitability is favorable for companies that support dairy production.
• The recent trend in dairy expansion has been toward regions with local corn and alfalfa acreage, rather than the California farm model. Demand for high quality hay is increasing. The Chinese have started to buy U.S. alfalfa farms.
• Approximately 41 percent of U.S. milk sales are private label, and 75 percent of all U.S. milk sales are through supermarkets and hypermarkets.
• General Mills, Danone and Chobani are the leading U.S. yogurt brands. All have shown no growth to negative growth during the last year.
• The Chinese IMF (infant milk formula) market is predicted to grow around 15 percent annually through 2017. Major non-Chinese companies serving the Chinese IMF market include Danone, Nestle and Mead Johnson. The biggest Chinese player is Mengniu.
• Companies well positioned to benefit from the growing demand for dairy products include: AGCO (feed management, forage harvesting), Balchem (choline supplements), Beingmate (leading Chinese IMF producer), Chr. Hansen (leader in dairy enzymes), China Modern Dairy (premium milk products), Dairy Crest (UK’s largest supplier of dairy products), Danone (dairy is 54% of revenue), Dean Foods (large processor and distributor of dairy products in the U.S.), Emmi (world’s leading provider of Swiss cheese), Fonterra Co-operative Group (world’s largest milk processor), Glanbia (market leader in sports nutrition, premixes, ingredients, cheese), Meiji Holdings (leading provider of milk products in Japan), Nestle (biggest producer of milk products in the world), Phibro Animal Health (nutrition for cows), S&W Seed Company (leader in alfalfa seed) and Yakult Honsha (dairy product in Japan), among others.
Source: Natural Products Insider
