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 - Starting a New Business Chapter
Moderate barriers discourage entry into the Dairy Produce Wholesaling industry. The largest barrier to entry is the cost of establishing warehousing and distribution systems. Purchase of refrigerated vans to transport dairy produce and refrigerated storage facilities are a significant capital cost for new entrants. These items are essential, due to the perishable nature of most dairy products. Some wholesalers will reduce initial capital outlay for these items by leasing them. New entrants also need to invest in an electronic inventory system and computerised tracking software... purchase to read more