New markets or market segments promise an increase in production volume and raise the expectation of top-line growth. In the blog of Euromonitor International, food analyst Raphaël Moreau uses the example of Danone and FrieslandCampina to describe why and how companies develop new markets. According to the Euromonitor food analyst, emerging markets and value-added products are key strategies to tackle milk overproduction. Especially in Africa, Latin America, and Asia, the sale of value-added milk could be increased, says Moreau in his article.
“Hence, the group will need to focus more strongly on value-added premium dairy products if it is to maintain margins.”
– Raphaël Moreau
Jim Cornall from the trade magazine dairyreporter.com spoke with Moreau and quotes him in his article: “New markets and premium products are key: Focusing on added-value milk derivative such as whey powder could also help dairy producers.” In this way, the challenge of milk over-production due to the end of EU milk quotas could be addressed.
We would like to add, for example, drinks that are enriched with healthy pieces of fruit or vegetable bits, or even cereal grains.
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