Turning sour: Excess global supply of dairy products has reduced industry revenue

The Butter and Dairy Product Manufacturing industry has struggled in the face of challenging global dairy prices and volatile domestic output. Adverse climatic conditions, fluctuating operating costs, volatile global demand and shifting global prices have challenged the industry. Changing consumer preferences in the domestic market have also affected industry operators, forcing them to alter their product ranges in response. Industry revenue is expected to decline at an annualised 1.3% over the five years through 2017-18, to $6.8 billion. Industry revenue is projected to grow by 1.6% during 2017-18 as global dairy prices recover and domestic output rises...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Consumers have increasingly shown a preference for butter over other spreads like margarine
  • The industry has benefited from higher national yoghurt consumption over the past five years
  • A major industry challenge lies in maintaining its international and domestic competitiveness
  • Industry Report - Industry SWOT Analysis Chapter

    The Butter and Dairy Product Manufacturing industry is in the mature phase of its economic life cycle. The industry is dominated by established brand names and manufacturers, which have increased their share of the industry over the past five years. The nature of butter products makes it difficult for manufacturers to be particularly inventive in terms of product offerings and butter formulas. However, growth in the low fat, dairy spread and premium segments indicates that there is some room for new product creation. Product innovation has occurred in the yoghurt and whey powder products segments.Industry value added (IVA), which is a measure of an industry's contribution to GDP, is expected to fall at an annualised 0.3% over the 10 years through 2022-23. Thi...purchase to read more.

    Additional Insights for the Butter and Dairy Product Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Butter and Dairy Product Manufacturing Industry are

  • Guaranteed supply of key inputs
  • Marketing of differentiated products
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Cheese, butter and yoghurt consumption in the Butter and Dairy Product Manufacturing industry impact industry performance..

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    What's in this report

    What is the Butter and Dairy Product Manufacturing Industry?

    Industry operators are primarily engaged in manufacturing dairy products, such as butter, yoghurt, condensed milk, evaporated milk and other dairy products. The manufacturing of cheese, ice cream, milk and milk powder is not included in the industry.

    Industry Products
  • Butter products
  • Proteins
  • Condensed milk
  • Other dairy products
  • Yoghurt
  • Industry Activities
  • Anhydrous milkfat
  • Butter
  • Buttermilk
  • Casein
  • Malt extract
  • Condensed or evaporated milk
  • Milk or cream canning
  • Skim milk based stock feed
  • Yoghurt production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets and grocery stores
  • Cheese, butter and yoghurt consumption
  • Domestic price of milk
  • Milk production
  • Trade-weighted index

  • Current Performance
  • Domestic situation
  • Health, diet and innovation
  • International influences
  • Chart: Revenue Growth

  • Industry Outlook
  • Domestic conditions
  • International issues
  • Table: Butter and Dairy Product Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Butter and Dairy Product Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Dairy Produce Wholesaling
  • Catering Services
  • Supermarkets and Grocery Stores
  • Convenience Stores
  • Restaurants
  • Cafes and Coffee Shops

  • Key Selling Industries
  • Dairy Cattle Farming

  • Products & Services
  • Other dairy products
  • Butter products
  • Yoghurt
  • Condensed milk
  • Proteins
  • Chart: Butter and Dairy Product Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets
  • Other food manufacturers
  • Other retail outlets
  • Wholesalers
  • Export markets
  • Chart: Major Market Segmentation for the Butter and Dairy Product Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Butter and Dairy Product Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Butter and Dairy Product Manufacturing Industry

  • Industry Globalization
    Murray Goulburn Co-operative Co Limited, Fonterra Co-operative Group Limited, Parmalat Australia Pty Ltd, Lion Pty Ltd,
  • Table: Murray Goulburn Co-operative Co Limited - financial performance
  • Table: Fonterra Co-operative Group Limited - financial performance
  • Table: Parmalat Australia Pty Ltd - financial performance
  • Table: Lion Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Butter and Dairy Product Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Butter and Dairy Product Manufacturing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A protein found in milk and used independently in many foods as a binding agent. It accounts for about 80% of the proteins in cow milk and cheese.
  • Farmgate Milk Price
  • Prices received by farmers when selling produce, in this case milk.
  • Nutraceutical
  • A food with healthy properties. A nutraceutical may be a naturally nutrient-rich or medicinally active food, or it may be a specific component of a food.
  • Whey
  • A by-product of cheese or casein manufacturing, whey is the liquid remaining after milk has been curdled and strained.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Butter and Dairy Product Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Butter and Dairy Product Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Butter and Dairy Product Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Butter and Dairy Product Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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