(Australian Associated Press)
Demand for Aussie milk and meat overseas is fattening revenues at the nation’s biggest food producers.
The latest rankings for the 100 biggest revenue earners in Australia’s food industry reveal a list dominated by meat and milk producers as a result of huge overseas demand and a lower Australian dollar.
Research compiled by IBISWorld shows dairy companies both topped and tailed the list, with NZ-based Fonterra retaining the number one spot while compatriot a2 Milk made its debut at number 100.
The specialised milk producer lifted revenues more than 40 per cent during 2014/15 on the back of fresh milk exports to China and huge sales of infant formula locally.
Other dairy producers in the top 100 include Murray Goulburn in fourth position, Bega Cheese at 27 and Italian multinational Parmalat, which owns the Pauls, Oak and IceBreak milk brands, jumping to 19 from number 27.
While beef and lamb producers JPG Australia and Teys retained their top 10 positions, smaller rival Bindaree Beef climbed 16 spots on the list to number 35 as it capitalised on the demand for Aussie beef from overseas customers.
The growth enjoyed by meat and milk producers helped push up revenues for the top 100 food companies over $100 billion.
IBISWorld senior analyst Spencer Little said much of the demand for Aussie milk and meat exports was coming from customers in southeast Asia and China who value the quality of our local produce.
“The depreciating dollar has also made Australian products comparatively more affordable in overseas markets than before, and aiding all of this too is the better weather conditions for cattle farmers,” he told AAP.
The list also revealed that drinks companies like Carlton United Breweries and Coopers had their revenues eroded as more drinkers switched to boutique or craft beers.
But Mr Little said the wine industry was on the up after recovering from a supply glut, with the country’s largest winemaker Treasury Wines rising two spots to 13th after lifting revenues.
BIGGEST FOOD REVENUE EARNERS IN AUSTRALIA
* Fonterra Co-operative Group Limited (dairy)
* Lion Pty Ltd (beverage and food)
* Coca-Cola Amatil Limited (beverage)
* JBS Australia Pty Limited (meat processing)
* Murray Goulburn Co-operative Co Limited (dairy)
* Teys Australia Pty Ltd (meat production)
* Bidvest Australia Limited (grocery)
* Ingham Holdings II Pty Limited (poultry)
* Food Investments Pty Limited (food product manufacturing)
* Nestle Australia Ltd (food product manufacturing)