Frieslandcampina and Milcobel have set a combination plans four months later, they have set the merger plans, and another pair of European milk groups are less likely to have joined forces and are the last one.
On Tuesday, Denmark-based Arla Foods and the German DMK said they could create the largest dairy cooperative in Europe.
More than 12,000 farmers and 19 billion euros ($ 20.75 billion) are in a pro-form in the New AP.
In the past, two co-operators working together as a small process, believe that the combination will ensure that the combination will be ensured in a reduction in the overall European milk pool.
And, Arla General Director of the Greater Work Peder Tuborgh, tried to carry out other positive ones.
“By combining resources, the product develops our portfolio and expands on a global scale, reaches more than 160 markets to ensure stable food production. This synergy strengthens our” Tuborgh “and sustainable experience gossip.
The transformation of the European dairy market to an industrial growth is confirmed as it is clearly – it can lift some eyebrows if FrieslandCampina and Miljobel come some time quickly.
“I think that the current situation in the EU calls for force, the bride says,” Mark Voorbergen, dairy industry consultants and partners in the Netherlands, Moosenbeek and partners.
“I think we will see the capacity reduction in such consolidation initiatives, I think we have a chance to make the potential reduction. I think that everyone is done by two, when they are carried out by two companies.”
Europe’s dairy processors operate in an industry in terms of stagnant consumption and falling production.
The slowdown in the EU is a factor in the consolidation of the region in the dairy sector of the region in the last few years – including both Arla and DMK’s transactions.
Participates in operations in European markets, including the last ten years and more, Arla England, Belgium and Germany. DMK itself itself in 2011 the largest milk processor, Nordmilch and Humana Milçindustrie, combined. Five years later DMK hit a Outstanding combination With the Netherlands based document kaa.
According to EU’s EU research for various agricultural sectors by the EU, the consumption of dairy products in the bloc is forecasted (for example, up to 0.1% of 0.1% to 0.1% is projected)
Meanwhile, the expectations of a tougher policy of the EU and national environmental policies in Brussels will lead to a 13% reduction in the flock of the block until 2035 compared to 2021-2023.
Dairy production can reduce 0.2% per year, 0.2% between 2035, the commission will grow in areas such as cheese, whey, although more slowly than the past. “Cheese and Whey, from the EU dairy pool by 2035,” he said, “he said.
Voorbergen sees cheese and zerabi as two opportunities for the new, greater arla. In the past, two cooperatives, including Arnoco joint venture, including the DMK’s cheese enterprise, including Cheese’s production and Lactosa, Arla’s global substances will be lactose.
“We think that there will be no means, not to be in the German market, especially in the German market, but also both companies, and I think it is a combination of strong cheese and delicate cheese and elegant cheese and gentle cheese and delicate cheese Only food.
“Of course, the cheese is probably the main driver of consumer growth in the European market and is probably out of the European market.
The 2035th Worldview statement of the commission is likely to face the growing competition of the competition for the supply of the EU’s milk sector outside the block. The EU’s dairy industry has benefited from the growing demand that gives milk in the world-developing markets, but Brussels sees some regions, increases its efforts to provide more self-sufficiency.
“Southern East Asia and North African dairy production are expected to increase by 3% a year, until 2035” Commission notes “.
However, the report says the expected exporters of the expected exporters of the expected exporters of the domestic demand will be the need for the import of two exporters “24% of each accounting”.
“The EU dairy exports product portfolio, as well as a student in trading partners, should adapt to the students who prefer additional valuable milk products,” the commission report says.
Of course, both Arla and DMK are working out of work. The majority of Arla’s sale remains in Europe, but sells packaged products and dairy products outside the region. Looking at further expansion through M & A in the Middle East and North Africa A continuous interest In the Milk assets of the Arabic food industry in Egypt. DMK, in Voorbergen notes, there is an “interesting job” that sells cheese in the former Soviet countries in Central Asia.
“I think it is something that the DMK can add to the arlasy food,” he adds. However, a smile, Voorbergen shows that Arla will be a little early to offer the existing volatility in global trade. “I must say that if you are talking about the markets that have recently happened, something open is open,” he says. “It doesn’t really mean to say where the opportunities are there because it can be different in two months.
A topic where Voorbergen is more accurate is the prospect of even more consolidation in the dairy industry of Europe. In four months, two main proposed transactions can be announced, but more operations in the horizon.
“I think I was looking at the look of a helicopter, in fact I would be applauded.
“Arla and DMK are unlikely to be a great thing in the stagnant milk market in Europe,” it was first created and published Only foodA global brand.
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