The International Farm Comparison Network has judged Fonterra the number one milk processor in the world.
IFCN benchmarked 600 milk processors in more than 70 countries and found that the top 21 processors represent just 21% of world production.
Fonterra, at number 1, processes 2.7% of world production. It was followed by Dairy Farmers of America, Nestlé, Dean Foods and FrieslandCampina.
India produces 114.4 million tonnes of milk making it the top producer by volume. New Zealand is ninth with 17.3 million tonnes.
The report says the dairy crisis is global, affecting 150 million dairy farming families.
The world price for milk reached $US20 (15 Euro) for 100 kilos in 2008 but IFCN found only 10% of the world’s milk can be produced at that price.
It said that price isn’t sustainable unless the market is distorted by policy and that dairy policy will be the main driver for the future milk price level.
I’m not sure what they mean by policy but I suspect it means political interference resulting in subsidies and/or quota.
The NBR has Fonterra’s reaction to the report.