Industry Analysis & Industry Trends
A substantial 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 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 3.3% over the five years through 2014-15, to reach $3.20 billion. Reduced domestic milk consumption and depressed prices will contribute to a forecast revenue decline of 1.8% in 2014-15.
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 respectively account for 34.8% and 24.2% of industry establishments. Queensland accounts for a further 15.4% of establishments. The level of concentration 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... purchase to read more