Industry Analysis & Industry Trends
A major shift in the dairy supply chain has hurt the Dairy Produce Wholesaling industry. 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 has created a major problem for the industry. Wholesale bypass and downward price pressure are causing industry revenue to decline at an estimated annualised 3.1% over the five years through 2014-15, to reach $3.21 billion.
The major supermarkets, Coles and Woolworths, have immense operating scale. This has contributed to increasing wholesale bypass over the past five years... purchase to read more
Industry Report - Starting a New Business Chapter
The industry exhibits low levels of barriers to entry, with the largest barrier to entry being the cost of establishing warehousing and distribution systems. The major capital cost to enter this segment of the market is the purchase of refrigerated vans and refrigerated storage facilities to transport the dairy produce. This is essential due to the perishable nature of most dairy products. A new entrant will also need to invest in an electronic inventory system and computerised tracking software. Over the past five years, barriers to entry have increased slightly as more industry players begin to operate their own warehouses to save outsourcing costs and boost overall profit, especially as economies of scale within their smaller operating region becomes increasingly important... purchase to read more