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 Key Buyers Chapter
The Dairy Produce Wholesaling industry exhibits a low level of market share concentration. No industry operator has a significant influence on the industry. This low level of concentration is due to the highly fragmented nature of the industry, with only a handful of industry players operating on a national scale. The remainder of the industry focuses on smaller geographical markets. The industry's low market share concentration is expected to persist over the next five years in the absence of regulatory change. This is due to the growing number of smaller consumers such as convenience stores and restaurants, which are difficult for large wholesalers to coordinate... purchase to read more