Industry Analysis & Industry Trends
Unprecedented volatility in the international dairy market and the global financial crisis have had a significant influence on the Milk and Cream Processing industry. Over the past five years, the 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, largely due to rapidly rising demand from Asian markets. In conjunction with a multitude of adverse conditions, industry producers have been forced to absorb some of the cost increases, resulting in lower profit margins. Industry players have benefited from clever product and packaging innovations, particularly in the product segment that offers lower fat, full-cream options to cater for a growing customer base... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entry in the Milk and Cream Processing industry are high, with the biggest threat facing potential new entrants being the extremely well entrenched position of the industry's major players such as Lion, Fonterra and Murray Goulburn. These global players enjoy high brand and customer loyalty and have considerable resources to invest in advertising and promotions to protect and grow their market share. Further, the major players enjoy favourable contracts with key suppliers such as grocery stores and supermarkets that maybe difficult for new entrants to secure.
All of the industry's major players have very strong product portfolios with many of the country's best-known dairy brands being owned between them... purchase to read more