Brazil's dairy market is to prove one of the world's most vibrant, growing by nearly 10 percent a year, according to advisers on the spin-off of JBS's Vigor business, whose revenues are to expand at an even quicker rate. Cheese, with growth of 14 percent a year, is to lead the Brazilian dairy boom, although it will still lag the yogurt market, which will grow by 10 percent a year to R$7.33bn, bankers at Banco Bradseco said.

The overall dairy market will expand to R$39.9bn, from R$22.9bn in 2010, they added, quoting private reports from Nielsen, Abia and Euromonitor.

The forecasts reflect assumptions that Brazilians, whose milk consumption per capita is half the world average, will continue to close the gap.

"Brazilian per capita consumption is still low when compared to developed countries," Banco Bradseco said.

"Such low per capita consumption is expected to drive further growth of the sector in coming years."


The comments came in a report which Brazil-based JBS, the world's biggest meat group, released to investors considering participating in a flotation of the Vigor dairy business.

Vigor, founded 95 years ago, was acquired by JBS through its 2009 purchase of Bertin, which had acquired the dairy group two years before. The group is particularly strong in Brazil's Sao Paulo region, where, according to Nielsen, it has a 17 percent share of the dairy market. PD

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