Industry Analysis & Industry Trends
Over the past five years, the Milk and Cream Processing industry has had to contend with adverse climatic conditions, rising production costs and an increasingly health-conscious marketplace. There have been dramatic changes in milk prices over the period, largely due to rapidly rising demand from Asian markets. Numerous adverse conditions have forced industry producers to absorb some of the cost increases, resulting in stagnant profit levels. However, industry players have benefited from product innovations, particularly lower fat and full-cream options that cater to taste and health consciousness. Despite this, the industry faced competitive pressures and tough supply conditions early in the period... purchase to read more
Industry Report - Industry Investment Chapter
Like many food processing industries, milk and cream processing requires a high level of capital investment, as measured by the labour-to-capital ratio. IBISWorld estimates that industry producers require $0.34 worth of capital investment for every dollar paid as wages. Modern manufacturing plants require high levels of capital expenditure on sophisticated technology and equipment to increase productivity without the need for additional labour. However, the industry requires slightly more labour than related food manufacturing industries due to the nature of production, complex product sorting and significant product diversity.
The level of capital intensity varies greatly among industry players... purchase to read more