This year’s Top 100 reflects the financial reporting from calendar year 2022 and financial year 2023. The list only includes manufacturers and looks at the total revenue of the highest reporting ANZ entity of the company to minimise reporting inconsistencies. IBISWorld industry analyst, Levi Duane-Davis, provided this analysis; enterprise analyst Varis Desai compiled the list; and Food & Drink Business editor Kim Berry wrote each of the company profiles.
The top 10
Fonterra Co-op Group and JBS Australia sit at the top of the list for the seventh consecutive year. Fonterra increased profit and improved performance in food-service channels thanks to growth in pricing and greater demand as China’s lockdown restrictions began to ease in early 2023. Favourable margins on ingredient prices, particularly for proteins and cheeses, supported further revenue growth for Fonterra, keeping it on top of the list.
No companies entered or exited the top 10 this year. However, Saputo Dairy Australia fell three places to ninth on the back of lower export sales volumes. Thomas Foods International and Teys Australia both jumped three places, to sixth and seventh respectively. This movement pushed Inghams and Treasury Wine Estates down one and two places, respectively.
Asahi Holdings and Coca-Cola Europacific Partners Holdings (Australia) (CCEP) both experienced year-on-year growth, but CCEP’s significant 75 per cent growth over the year was enough to see it swap places with Asahi, from fourth to third place.
The biggest rises
This year, 31 companies grew their revenue by double or triple digits compared to 23 in 2022.
Craig Mostyn and Almondco Australia recorded the largest growth with 102.7 and 101.8 per cent growth, respectively. Two companies recorded over 50 per cent increases – CCEP and malt producer Boortmalt Australia.
Craig Mostyn had the most significant jump in ranking, 66th to 44th, with its reported revenue more than doubling on the previous year. The primary driver behind this was the acquisition of 50 per cent of West Australian meat processor and exporter V&V Walsh.
Another strong performer was meat processor Mort & Co, which moved up the list 13 places from 44th to 31st. In July 2022, the company acquired a 50 per cent interest in the Yarranbrook Feedlot in Queensland, contributing to its growth.
High over-the-hook prices and cattle turn-off rates, along with herd rebuilding activity, have also stimulated revenue growth for the industry as a whole.
New arrivals
This year, the Top 100 welcomed eight new members. Snack Brands, Geraldton Fishermen’s Co-op, and Scalzo Foods Group particularly stood out among these inclusions, ranking 42nd, 53rd, and 57th respectively. Snack Brands, a potato chip and other potato-based product producer behind brands like Kettle and Thins, made it to the list after acquiring full ownership of its operations. Geraldton Fishermen’s Co-op made the list after growth in exports, while Scalzo Foods Group benefited from greater consumer health awareness. Other new arrivals were malt producer Boortmalt Australia (58), almond grower Olam Orchards (59), Newly Wed Foods (64), Cordina Chickens (72), and Beston Global Food Company (95).
Meat Processing
The food manufacturing sector encompasses a variety of industries, with meat processing being one of the largest.
In this year’s rankings there are 17 companies involved in the meat processing industry, with JBS Australia (2) and Teys Australia (7) topping the list.
The industry’s performance has been under pressure over the past year. Despite relatively consistent demand from foreign markets for Australian meat, herd rebuilding activities have at times resulted in an oversupply of meat, which lowered output prices and led to an overall decrease in revenue.
Unstable production levels and disruptions due to the COVID-19 pandemic have also lowered profit margins for meat processors over time.
For Australian meat processors most income derives from exports, with the beef segment contributing the greatest value.
Over the past year, there has been significant growth in exports to key markets, including the US and South Korea, presenting an opportunity for meat processors to expand their operations.
Sugar Manufacturing
In recent years, sugar manufacturers have grappled with unstable commodity prices and unpredictable weather conditions. Changes in how milled sugar is marketed and exported have resulted in changes to supply chain processes, causing uncertainty within the industry.
Considerable fluctuations in the prices of sugar, both globally and locally, have raised profitability concerns as exports now make up a little over 70 per cent of the industry’s revenue.
Global sugar supplies and pricing typically hinge on major sugar-producing countries like Brazil and India. At the same time, an increase in demand from large Asian economies like Japan and South Korea is promoting growth in export volumes.
Variations in global demand and supply and domestic sugar cane production are likely to continue influencing sugar manufacturers’ performance going forwards.
The Milk and Cream
Despite an unstable environment in the domestic market, revenue from milk and cream processing has grown significantly in the past few years. This stems from increasing demand and high prices for Australian milk in foreign markets. The industry’s annualised revenue growth rate is expected to be 3.2 per cent over the five years through 2022-23.
Intense price wars among major supermarkets at the start of the decade led to competitively priced private-label milk products, which transformed milk processing operations. With this development, it became crucial for milk and cream processors to secure private-label milk deals.
Increasing demand for fresh Australian milk and cream in Asian markets, including China, Malaysia, and Singapore, has contributed to a rise in export revenue. In contrast, domestic raw milk production has plummeted over the past decade due to unstable weather conditions, leading to some processors exiting the industry.
This shortage in the milk supply has resulted in increased farmgate prices, reducing profit margins and leading to the closure of smaller, less competitive processors.
