Industry Analysis & Industry Trends
A substantial 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 have created a major problem for the industry. Wholesale bypass and downward price pressure are expected to cause industry revenue to decline at an annualised 0.8% over the five years through 2015-16, to reach $3.3 billion. Higher milk prices and a marginal increase in milk consumption is anticipated to lift revenue by 2.1% in 2015-16.
The major supermarkets, Coles and Woolworths, have immense operating scale... 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 declining importance of dairy produce wholesalers. Furthermore, consolidation among manufacturers has increased their size and scale, allowing them to look to overseas markets directly rather than go through wholesalers. Consequently, the Dairy Produce Wholesaling industry has suffered. Industry revenue is projected to fall at an annualised 0.8% over the five years through 2015-16, to reach $3.3 billion. However, revenue is forecast to grow 2.1% in 2015-16... purchase to read more