|Last Quarterly Update:||3/13/2017|
|SIC Codes:||2021, 2022, 2023, 2024, 2026|
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Companies in this industry manufacture dairy-based products from raw and processed milk, along with dairy substitutes. Major companies include Dean Foods, Dairy Farmers of America, and Land O'Lakes (all based in the US), as well as Danone and Groupe Lactalis (France); Fonterra Co-operative Group (New Zealand); Koninklijke FrieslandCampina (the Netherlands); Meiji (Japan); and Nestlé (Switzerland).
More than 815 million metric tons of milk are produced annually, according to the Food and Agriculture Organization of the United Nations. India is the largest milk producer, followed by the US, China, Pakistan and Brazil. New Zealand and the European Union are major dairy exporters. Demand for milk and milk products is growing in developing nations in East and Southeast Asia due to rising incomes, population growth, and urbanization.
The US dairy products manufacturing industry includes about 1,700 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $112 billion.
Changes in consumer income drive demand for various types of dairy foods. The profitability of individual companies depends on efficient operations and marketing, as milk is a commodity product. There are few economies of scale in the manufacturing process, which is why small companies can effectively compete with large ones in local markets. However, economies of distribution favor large manufacturers. Many segments of the US dairy products industry are highly concentrated. The 50 largest fluid milk producers, for example, account ...
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