Dive Brief:
- Agropur is buying the dairy-processing assets of Davisco Foods International. Terms of the deal were not disclosed.
- The purchase gives the Canadian dairy cooperative control of cheese plants in Minnesota, Idaho, and South Dakota, plus a whey plant in Minnesota -- doubling its processing capability in the U.S.
- The move is just the latest in a string of acquisitions and other investments by Agropur to boost production capacity.
Dive Insight:
The rapid growth of Agropur -- and its sudden advances into the U.S. -- are interesting and, perhaps, illuminating.
The world's dairy industry is going through rapid change, driven by things like the rise of Greek-style yogurt and the sheer size of China's appetite for baby formula. Canadian dairy companies like Agropur and Saputo, as well as global giants like Danone, see opportunities in this. Whereas here in the States, much of the dairy business seems to be overwhelmed by contracting markets, high taxes, and union wages.