A multinational yogurt empire that has grown to $1.2 billion a year, with millions of customers across the globe, is under threat of closure as multinational companies are struggling to find new markets.
The global yogurt industry is in crisis and could collapse if the global food supply system remains the same, according the International Dairy Foods Association (IDFA), the global trade body.
IDFA says there are over 7,000 major multinational companies, which make roughly $8 billion in global sales annually.IDFA chief executive Harish Chatterjee said: “The global food system has been deteriorating for a number of years.
It is very much on the brink of collapse.”
The group of multinational companies has invested $4.5 billion to grow the industry over the past decade and a half, according IDFA.
They are expected to close at least five of their global warehouses within the next year, it said.IDFAS global executive director Nandan Pandya said that in the past 10 years, more than 40 million tons of food have been produced by multinational companies.
“The growth rate has been very rapid, with the biggest growth rate being in the first quarter of this year.”
This is very worrying, as we are going through a very difficult period in the global economy, as a result of which our supply chains are at risk,” he said.
IDFAS is trying to prevent the closure of these warehouses, by ensuring that food is produced in India at fair conditions and by using alternative suppliers.
In the past, it has said that if the food system were to change, it would be devastating for the global supply chain.
The report said the world’s dairy industry is estimated to be worth around $9 billion.”
It will take some time to recover,” Pandya added.
The report said the world’s dairy industry is estimated to be worth around $9 billion.