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 Key Buyers Chapter
IBISWorld estimates that the four largest players in the Dairy Produce Wholesaling industry will account for significantly less than 40.0% of market share, indicating a low level of industry concentration. This is due to the highly fragmented industry, and the geographical focus of many industry players. IBISWorld expects that this low level of concentration will remain for the foreseeable future in the absence of regulatory change. This is due to the complexity and growing number of smaller consumers such as convenience stores and restaurants that is difficult for large wholesalers to coordinate... purchase to read more