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 - Starting a New Business Chapter
The barriers to entry in the Milk and Cream Processing industry are high, with the biggest threat facing potential entrants being the well-entrenched position of the industry's major players Lion, Parmalat, 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 have long-term contracts in place with key suppliers, such as grocery stores and supermarkets, which 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