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Dean Foods and CROPP to Set up a Joint Venture for Organic Milk

USA: Both the companies are setting up a 50/50 joint venture to bring organic milk in the market. Organic milk will be produced in Dean Foods' processing plants, and from there it will distributed to the various retailers via refrigerated direct store delivery (DSD) distribution system, depending upon the locations and various regions. Dean Foods will see the distribution and processing services, on the other hand [email protected] Valley will see the activities, starting from brand portfolio, marketing to the supply of organic milk from America's largest cooperative of organic dairy farmers. The motive of a Joint Venture is to enhance distribution network.

Currently, Organic Valley expertise in the emerging markets, natural channel and specialty distributors, while Dean Foods expertise in large format, dollar store and C-store. Dean Foods is offering inclusive dairy products to its retail customers, and the products which company is offering are well known and trusted in United States.

According to TechSci Research, the growth in the organic food market during the forecast period can be attributed due to increasing awareness for organic food, as the demand for organic products is increasing throughout the globe, mainly from US, Canada. Coupled with surging investments in organic food market, rising use of bio-fertilizers in growing organic plants, and the most importantly, further increase in land area under organic cultivation, with favorable government policies. The patterns like growing variety of crops simultaneously, at a same land, so that competition of nutrients between the plants can be avoided, known as multiple cropping, will help in growing Global Organic Food Market during the forecast period.

According to a recent report published by TechSci Research, Global Organic Food Market Forecast and Opportunities, 2011 – 2021”, global market for organic food is projected to grow at a CAGR of over 14% during 2016-2021, on account of high demand for organic food in retail stores, restaurants, schools and office cafeterias. Europe dominated demand for organic food across the globe and the region is projected to continue dominating the market through 2021. Further, organic fruits & vegetables dominated global organic food market, due to high content of protective antioxidants, less pesticide residue and low level of toxic chemicals in organically cultivated fruits & vegetables. White Wave Foods, Hain Celestial, General Mills, UNFI, Sprouts Farmers Market and Edeka Group are few of the major players operating in global organic food market.

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