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 Locations Chapter
The Dairy Produce Wholesaling industry is largely concentrated in New South Wales and Victoria, which together account for almost 65.0% of industry operators. Queensland accounts for a further 14.0% of operators. Business distribution largely follows the spread of manufacturing and processing facilities, which consequently follow the overall national dairy herd that is primarily located in Victoria and New South Wales. This has resulted in a high level of concentration across these states, as wholesalers aim to reduce transportation costs and limit spoilage of perishable dairy goods.
More than 70.0% of milk production in Victoria and Tasmania is exported and the returns from these exports affect domestic competition... purchase to read more