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 SWOT Analysis Chapter
The Dairy Produce Wholesaling industry is in the decline life cycle phase. This is indicated by the industry's falling revenue and value add, declining enterprise and establishments and the waning importance of dairy wholesalers in the supply chain.
Industry value added (IVA), a key measure of an industry's contribution to the wider economy, is projected to fall at an annualised 1.2% over the 10 years through 2019-20. Comparatively, annualised GDP growth of 2.7% is anticipated over the same period. A negative IVA figure is indicative of an industry that is shrinking, relative to the wider economy. Furthermore, industry revenue has fallen over the past five years and is projected to continue falling over the next five years... purchase to read more