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 - 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 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 may be difficult for new entrants to secure.
All of the industry's major players have strong product portfolios with many of the country's best-known dairy brands being owned between them... purchase to read more