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FrieslandCampina Cuts 1,800 Jobs for Profitability

FrieslandCampina, a prominent Dutch dairy cooperative, has unveiled a comprehensive cost-saving strategy that includes cutting 1,800 jobs across its global operations over the next two years. This strategic move, geared towards improving profitability, is projected to yield savings of up to €200 million ($215 million) and forms a pivotal component of the company’s ambitious plan to slash annual expenses by €400 million to €500 million by 2026.

Global Dairy Powerhouse

With a formidable presence in more than 100 countries, FrieslandCampina ranks as one of the world’s leading dairy cooperatives. Its product portfolio spans a wide spectrum, encompassing dairy staples such as milk and cheese, as well as vital components for the food and pharmaceutical sectors. The cooperative’s workforce currently spans 30 countries and comprises roughly 22,000 employees, underscoring its global significance.

Streamlining Operations for Efficiency

The decision to cut 1,800 jobs underscores FrieslandCampina’s commitment to operational efficiency and cost control. This ambitious workforce reduction initiative will require careful planning and execution to ensure that the company continues to meet the demands of its diverse international customer base while remaining competitive in an ever-evolving industry.

Financial Performance

In its financial report for 2022, FrieslandCampina reported a substantial turnover of €14 billion, a testament to its market dominance. Nonetheless, the dairy industry is not without its challenges, including fluctuating milk prices, shifting consumer preferences, and mounting environmental concerns. In response, FrieslandCampina is proactively adapting its operations to navigate these challenges while sustaining profitability. FrieslandCampina plans to cut 1,800 jobs worldwide in 2 years, aiming for €200 million savings to boost profitability and reduce annual costs by up to €500 million by 2026.

Navigating Industry Challenges

This strategic workforce reduction by FrieslandCampina reflects a proactive response to the multifaceted challenges confronting the dairy industry. By focusing on cost efficiency and profitability, the cooperative aims to maintain its position as a competitive and sustainable player in the global dairy market.

As FrieslandCampina embarks on this transformative journey, its actions are poised to shape not only its future but also the broader landscape of the dairy industry. Stakeholders, employees, competitors, and industry observers will closely monitor the cooperative’s progress as it strives to adapt to changing market dynamics while ensuring long-term sustainability.

Source: Amsterdam, December 12, 2023 (Reuters)

Top Dairy Producers In The World

Explore the top dairy producers of 2023 in this comprehensive report, featuring a detailed analysis of leading dairy-producing countries and companies. Gain insights into the global dairy industry with key data on production volumes and revenue, highlighting major players like Nestlé, Lactalis, and Dairy Farmers of America. Essential reading for industry professionals and those interested in global dairy market dynamics.

As of 2023, the top dairy producers in the world can be categorized into two main groups: countries and companies.

Top Dairy Producing Countries

European Union
United States
India
China
Brazil

These rankings are based on the overall production of cow milk.

Top Dairy Companies by Revenue

Nestlé (Switzerland)
Lactalis (France)
Dairy Farmers of America (United States)
Danone (France)
Yili Group (China)
Fonterra (New Zealand)
FrieslandCampina (Netherlands)
Mengniu Dairy (China)
Arla Foods (Denmark)
Saputo Inc. (Canada)

Dairy production is crucial globally, providing essential nutrition, economic livelihoods, cultural value, and contributing to food security. Despite sustainability challenges, it remains a key sector, driven by continuous innovation and research.

Top 10 Largest Dairy Producers in USA by Market Share & Volume

Overview of the U.S. Dairy Industry

The U.S. dairy industry is a critical sector in American agriculture. It includes the production, processing, and distribution of milk and milk products. The industry is known for its complexity, with a wide range of products from fluid milk to cheese, yogurt, and butter.

Criteria for Ranking

The top dairy producers are typically ranked based on various criteria, including:

Milk Production Volume: The total volume of milk produced is a primary factor.
Revenue: Financial performance can also be a key indicator.
Market Share: The percentage of the market controlled by a producer.
Geographical Spread: The extent of operations across different regions.
Product Diversity: The range of dairy products offered.

Top 10 Dairy Producers in the USA (as of early 2023)

Dairy Farmers of America (DFA)
- Largest dairy cooperative in the USA.
- Wide range of products including fluid milk, cheese, and dairy ingredients.
Dean Foods
- One of the nation’s leading fluid milk processors.
- Brands include DairyPure, TruMoo, and Friendly’s.
Land O’Lakes
- Known for butter and cheese products.
- Also a large cooperative with a strong presence in the Midwest.
California Dairies, Inc.
- Largest dairy cooperative in California.
- Specializes in butter, fluid milk, and milk powder.
Saputo Inc.
- A global dairy company with significant operations in the USA.
- Products include cheese, fluid milk, and specialty dairy items.
Agropur
- Canadian cooperative with substantial operations in the USA.
- Known for cheese and other dairy products.
Schreiber Foods
- Private company specializing in yogurt, cheese, and other dairy products.
- Supplies many food service and retail businesses.
Great Lakes Cheese
- Major producer of cheese and dairy products.
- Supplies to retail and food service sectors.
Kraft Heinz
- Known for cheese products and other food items.
- A major player in the dairy segment with brands like Philadelphia Cream Cheese.
Leprino Foods

World’s largest producer of mozzarella cheese.
Supplies cheese to many pizza chains and foodservice providers.

Notes and Considerations

Market Dynamics: The dairy industry is subject to fluctuations due to factors like global demand, milk supply, and changes in consumer preferences.
Sustainability and Innovation: Many producers are focusing on sustainability and innovative practices to meet changing market demands and environmental concerns.
Recent Mergers and Acquisitions: The rankings can change due to mergers, acquisitions, and business restructurings.

Sources for Further Information

Industry Reports: Reports from USDA, FAO, and dairy industry associations.
Financial News: Bloomberg, Reuters, and industry-specific news sources.
Company Reports: Annual reports and press releases from the companies themselves.

Related: The Top 8 Dairy Companies

Additional content: 16 Biggest Milk Companies in the US

The Top 8 Dairy Companies

The dairy industry plays a vital role in providing essential nutrients to people all over the world. With advancements in technology and a growing global population, the demand for milk and milk products has been on the rise.

The global dairy industry is valued at around $600 billion, with a projected growth rate of 2.5% annually. The industry includes milk production, processing, and distribution of various dairy products such as milk, cheese, yogurt, butter, and ice cream. The industry is highly concentrated, with a few major players dominating the market.

Factors that drive the growth of the industry include population growth, urbanization, and changing consumer preferences towards dairy-based products. However, the industry faces challenges such as fluctuating milk prices, changing consumer preferences towards plant-based alternatives, and increased competition from non-dairy products.

The largest dairy companies around the world:

Fonterra Co-operative Group Ltd. – Headquartered in New Zealand, Fonterra is the world’s largest exporter of dairy products and one of the largest dairy companies globally, with revenue of $16.6 billion in 2020.
Dairy Farmers of America (DFA) – Based in the United States, DFA is a milk marketing cooperative that supplies milk to major dairy processors and brands. It had a revenue of $14.6 billion in 2020.
Lactalis Group – A French dairy company, Lactalis is one of the largest dairy companies in the world, with a revenue of $15.8 billion in 2020. The company produces a wide range of dairy products including milk, cheese, and yogurt.
Arla Foods – Headquartered in Denmark, Arla Foods is a cooperative owned by dairy farmers in Sweden, Denmark, the UK, Germany, Belgium, Luxembourg, and the Netherlands. The company generated revenue of $13.2 billion in 2020.
Saputo Inc. – A Canadian dairy company, Saputo is one of the largest dairy processors in the world, with a revenue of $9.4 billion in 2020. The company produces a wide range of dairy products including milk, cheese, and butter.
FrieslandCampina – A Dutch dairy company, FrieslandCampina is one of the largest dairy cooperatives in the world, with a revenue of $9.3 billion in 2020. The company produces a wide range of dairy products including milk, cheese, and yogurt.
Nestlé S.A. – A Swiss multinational food and drink processing conglomerate, Nestle is one of the largest dairy companies in the world, with a revenue of $91.4 billion in 2020. The company produces a wide range of dairy products including milk, cheese, and yogurt.
Danone – A French multinational food-products corporation, Danone is one of the largest dairy companies in the world, with a revenue of $27.5 billion in 2020. The company produces a wide range.