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. Growth has largely been due to rising demand for Australian milk in export markets. Industry revenue is expected to grow at an annualised 3.7% over the five years through 2015-16, to reach $1.8 billion. However, reduced domestic milk prices are expected to depress industry revenue by 0.6% 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... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Milk and Cream Processing industry is highly concentrated. The industry's four largest players are expected to account for more than 90% of industry revenue in 2015-16. Market share concentration has increased over the past five years, with mergers or acquisitions of several large dairy cooperatives and manufacturing companies, such as Parmalat's takeover of Harvey Fresh in early 2014, contributing to consolidation within the industry.
Global food industries are also undergoing consolidation and rationalisation. The big international food companies are able to capitalise on their manufacturing and wholesaling economies of scale, and international brand awareness, to increase their shares of local markets... purchase to read more