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 Analysis Chapter
The Milk and Cream Processing industry has performed well over the past five years. Strong export growth has been the saving grace for the industry. Numerous challenges have developed in the domestic market, including supermarket milk wars and falling domestic milk prices, due to plummeting global dairy trade prices. Nonetheless, industry revenue is expected to grow at an annualised 3.7% over the five years through 2015-16, to reach $1.8 billion.
Industry profitability has fallen over the past five years. Falling domestic milk prices coupled with rising production costs have reduced margins for many operators. Losses have forced some players to exit the industry, reflected in falling enterprise numbers over the past five years... purchase to read more