FRANCE – French dairy company Savencia Fromage & Dairy has expanded its footprint with the acquisition of Sucesores de Alfredo (Williner), one of the major players in dairy products in Argentina and the owner of the Ilolay yoghurt brand.

Founded in 1928, the Williner family company is a producer of milk, yogurt, butter, cheese, and desserts, which are exported to more than thirty countries.

With the acquisition, Savencia has enriched its current Argentinian portfolio with the Ilolay brand, which has been present in Argentinean households for decades.

“This acquisition strengthens Savencia Fromage & Dairy’s presence in Argentina where the Group is established with its heritage and local brands Milkaut, Santa Rosa, and Adler Olivier Defame, General Manager of Savencia Fromage & Dairy noted.

Development in the South American country is “part of the group’s growth strategy,” Savencia said in a statement released on April 5.

According to the dairy industry expo report, the competitiveness of the Argentine dairy industry continues to be affected by chronic political, economic, and institutional instability in the country.

Government policies including trade interventionism and a heavy tax burden, continue to generate uncertainty and complicate operational planning resulting in reduced investment.

Nevertheless, Statista projects revenue in the Argentina milk market to segment to amount US$2.24bn in 2023 and have an annual growth of 40.74% (CAGR 2023-2027).

The growth could however be impacted by drought, as a new survey published by the Observatory of the Argentine Dairy Chain (OCLA) shows that the South American country will produce less milk this year.

The Survey highlights a 4.7% reduction in the supply of raw milk is expected, from the 11,557 million liters obtained in 2022 to 11,015 million estimated by the end of 2023.

Although the drop will not be as dramatic as the one predicted by production entities, which spoke of up to 15%.

For the month of January only, milk production declined 7.3% from December, with December processing easing 2.3% YoY. Argentina’s total dairy export volumes declined 21% in January with a decline of 17% for total dairy export values.

 

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