Industry Analysis & Industry Trends
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. Numerous adverse conditions have forced industry producers 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. In the five years through 2014-15, industry revenue is estimated to grow at an annualised 0.2% to reach $1.9 billion... purchase to read more
Industry Report - Industry Investment Chapter
Like many food processing industries, milk and cream processing requires a high level of capital investment, as measured by the labour-to-capital ratio. IBISWorld estimates that industry producers require $0.35 worth of capital investment for every dollar paid as wages. Modern manufacturing plants require high levels of capital expenditure on sophisticated technology and equipment to increase productivity without the need for additional labour. However, the industry requires slightly more labour than related food manufacturing industries due to the nature of production, complex product sorting and a greater diversity in output of products.
The level of capital intensity also varies greatly among industry players... purchase to read more