Happy Holidays from DairyReporter!

Consolidation in the dairy sector continued during 2024.

Fonterra, Unilever and Kerry all announced reorganization plans with the aim to focus on core services and de-prioritize non-core businesses. Depending on who acquires the likes of Unilever’s ice cream business or Fonterra’s consumer division could bring about new – or strengthen existing – major industry players.

Nestlé, too, made changes at the top in a bid to streamline operations. The food giant’s dairy portfolio posted negative growth in Q3 as performance in coffee creamers offset gains in culinary and affordable dairy. With coffee prices at record highs, demand for creamers – a major sales contributor in Nestlé’s dairy portfolio – will be in sharp focus.

Sustainability will remain a big theme as companies continue to explore options that deliver meaningful emissions reductions up and down the value chain. Solutions to bring down on-farm emissions in particular will be closely watched by industry leaders – as will any repercussions on milk sales resulting from the Bovaer controversy in the UK.

2024 also saw major developments in packaging and food technology, leading, for example, to the emergence of the first probiotic-enriched ambient dairy beverage.

On the dairy alternatives side, precision fermentation start-ups made further steps towards commercializing their non-animal ingredients, with many citing 2025 as their launch year.

Global wholesale prices for dairy products varied in November, with signs of easing across the EU and the US and an uplift in Oceania, according to AHDB data. At the farm gate, dairy producers in New Zealand, the EU and the UK are enjoying elevated prices. In the US, the October all milk price of $25.20 per cwt was 30 cents lower than September but $3.70 higher than October 2023.

What could 2025 bring? Donald Trump’s trade and immigration policies will be closely watched, and depending on their scope, could spell trouble – but also opportunity – for the US and global dairy industry.