Industry Analysis & Industry Trends
A major shift in the dairy supply chain has hurt the Dairy Produce Wholesaling industry. Wholesalers were once an integral part of the chain, acting as a key link between manufacturers and retailers. The increasing dominance of the major supermarkets and rising consolidation among dairy manufacturers has created a major problem for the industry. Wholesale bypass and downward price pressure are causing industry revenue to decline at an estimated annualised 3.1% over the five years through 2014-15, to reach $3.21 billion.
The major supermarkets, Coles and Woolworths, have immense operating scale. This has contributed to increasing wholesale bypass over the past five years... purchase to read more
Industry Report - Industry Analysis Chapter
The dairy supply chain is undergoing a major shift. Wholesalers were once an integral part of the chain, acting as the key link between manufacturers and retailers. The increasing size and operating scale of the supermarket giants, Coles and Woolworths, has contributed to the falling importance of dairy produce wholesalers. Furthermore, consolidation among manufacturers has increased their size and scale, allowing them to look directly to overseas markets rather than go through wholesalers. Consequently, the Dairy Produce Wholesaling industry has suffered. Industry revenue is projected to fall at an annualised 3.1% over the five years through 2014-15, to reach $3.21 billion... purchase to read more