The number of mergers and acquisitions in the global dairy industry began to grow again

According to Rabobank, in the first year of the pandemic, the number of mergers and acquisitions in the world decreased significantly - by 25% compared to the previous year.

Roland Sossna, editor of the international magazine for dairy processors, International Dairy Magazine, analyzing the reaction of the dairy industry to the restrictions associated with the pandemic, notes that since lockdowns have greatly affected the conditions of sales (decreased in HoReCa and increased in retail), the main thing they were concerned about dairy companies at this time, was the introduction of appropriate changes in processes - production, packaging, delivery. They simply didn't have time for M&A meetings, and the meetings themselves were unsafe due to the epidemic.

As soon as the situation somewhat stabilized in 2021, the number of M&A transactions in the industry began to grow rapidly and almost returned to the level of the year before the year the pandemic began. For 6 months of this year, at least 50 such transactions were registered in the world.

Roland Sossna believes that the activity of M&A transactions can be a direct indicator of what state the economy is in, and now we can see how the situation will develop – whether the dairy industry has already overcome the negative consequences of the pandemic, or whether the virus will continue to affect business in this or that way. in a different way. it is still too early to draw conclusions, says Roland Sossna.

PioneerProduct based on IDM materials