Industry Analysis & Industry Trends
The Milk and Cream Processing industry has grown strongly over the past five years, despite challenging conditions in the domestic market. This is largely due to rising demand for Australian milk in export markets. Industry revenue is forecast to grow at an annualised 4.1% over the five years through 2015-16, to reach $1.8 billion. This includes forecast growth of 3.7% in 2015-16. Profitability has fallen over the past five years, as processors have been forced to absorb higher production costs.
The ongoing milk war between the major supermarket chains, where private-label milk products are priced at $1.00 per litre, has changed the way milk processors operate. This is because winning private-label milk contracts has become increasingly important over the past five years... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
IBISWorld expects that the Milk and Creaming Processing industry is in the mature phase of its economic life cycle. Industry value added, which measures an industry’s contribution to GDP, is expected to grow at an annualised 2.8% over the 10 years through 2020-21. This performance is in line with the economy, with GDP forecast to grow at the same rate over the same period.
The similar performance of the industry compared with the economy is typical of mature industries. Milk consumption has remained quite steady over the past five years. However, the staple nature of milk in many diets has ensured its continual consumption, particularly as the industry innovates to cater for broader dietary requirements, such as the need for lactose-free milk... purchase to read more