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 Investment Chapter
The Dairy Produce Wholesaling industry displays a moderate capital intensity level. For every dollar paid in wages, players allocate an estimated $0.26 towards capital investment. The main areas of capital expenditure including cooling and refrigeration equipment, storage facilities, delivery vehicles and the introduction of computerised warehousing systems. The latter has become more prominent over the past five years as players have looked for ways to reduce labour costs. Despite increasing adoption of computerized ordering and inventory tracking, the industry remains highly reliant on labour. The clerical nature of generating sales, processing orders, organising deliveries and maintaining relationships with suppliers creates an ongoing need for labour... purchase to read more