Industry Analysis & Industry Trends
A substantial shift in the dairy supply chain has hurt the Dairy Produce Wholesaling industry over the past five years. 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 2016-17, to total $3.2 billion. However, higher milk prices and a marginal increase in cheese, butter and yoghurt consumption are anticipated to lift revenue by 1.4% in 2016-17.
The major supermarkets, Coles and Woolworths, have immense operating scale... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Dairy Produce Wholesaling industry is in the decline life cycle phase. This is indicated by the industry's falling revenue, declining enterprise and establishments and the waning importance of dairy wholesalers in the supply chain.
Industry value added (IVA), a key measure of an industry's contribution to the wider economy, is projected to fall at an annualised 0.1% over the 10 years through 2021-22. This is a substantial underperformance relative to the economy, with GDP projected to grow at an annualised 2.5% over the period. This underperformance is typical of industries that are contracting as a share of the economy.
Along with falling revenue, the industry has also suffered falling profitability over the past five years... purchase to read more