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 Locations Chapter
Most businesses within the industry are located near registered dairy farms. As a result, the majority of industry establishments are located in Victoria, home to the Australian dairy industries. Victorian milk producers are expected to produce more milk than the rest of the nation combined, accounting for about two-thirds of Australia's milk production. This is due to the large number of registered dairy farms in Victoria, along with high milk yields among cattle from Victorian farms. Farm costs are the major determinant of production in the industry... purchase to read more