Industry Analysis & Industry Trends
The Dairy Produce Wholesaling industry has benefited from increases in world dairy prices over the past five years, but has been adversely affected by the volatility in industry production. Declines in milk production have occurred because of drought conditions, and dairy production in Australia and New Zealand has subsequently decreased. The industry's performance has also been constrained by the effect of wholesale bypass, and strong increases in oil prices have affected profitability. Industry revenue is projected to increase at an annualised 2.3% over the five years through 2013-14 to total $988.3 million.
The increasing market power of supermarkets over the past five years has led to the rise of wholesale bypass, with large retailers buying directly from the manufacturer... purchase to read more
Industry Report - Industry Investment Chapter
IBISWorld expects that the Dairy Produce Wholesaling industry exhibits a medium level of capital intensity. For every dollar paid in wages, $0.27 is allocated towards capital investment. This relatively low level of labour expense is predominantly due to the automated warehousing operations of many of the major players and the volatile costs of dairy products. The main areas of capital expenditure including cooling and refrigeration equipment, storage facilities, delivery vehicles and the introduction of computerised warehousing systems.
The wholesale industry has historically been labour intensive due to the clerical nature of processing orders and organising deliveries. Wages account for 4.4% of industry revenue in 2013-14... purchase to read more