Milking it: The industry has benefited from rising demand for healthy and natural products

The Butter and Dairy Product Manufacturing industry has faced challenging conditions over the past five years. Global dairy prices crashed in the first half of the period before stabilising but not fully recovering. One of the major players in the industry, Murray Goulburn, reached a state of near collapse before being acquired by Canadian dairy company, Saputo Inc. Production of the single largest product segment, butter, has significantly fallen due to major shifts in overseas demand and consumer preferences in the local market. Industry revenue is expected to increase at an annualised 2.8% over the five years through 2018-19, to $7.6 billion. This includes an expected revenue decline of 8.1% in the current year, largely due to a fall in butter production...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 14-19
2.8%
Forecast Growth 19-24
Profit
Employment
7,181
Businesses
118

Industry Threats & Opportunities

  • Rising health consciousness has boosted demand for industry products such as butter and yoghurt
  • The industry has benefited from high national yoghurt consumption over the past five years
  • A major industry challenge lies in maintaining international and domestic competitiveness
  • Industry Report - Industry Locations Chapter

    The spread of industry establishments around Australia largely follows the nation's concentration of dairy farming activity. Victoria is the dairy capital of Australia, and as a result, a large proportion of dairy products are manufactured in this state. Raw milk from the dairy farms is processed into drinking milk or manufactured for dairy products. There is a big variation among the states as to the proportion going into drinking milk versus manufacturing milk. Victoria and Tasmania allocate approximately 90% of their total milk production to manufacturing dairy products. In contrast, New South Wales, Queensland and Western Australia allocate approximately half of their total milk production to drinking milk and half to manufacturing dairy products. As ...purchase to read more.

    Additional Insights for the Butter and Dairy Product Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Butter and Dairy Product Manufacturing 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 primarily manufacture dairy products, such as butter, yoghurt, condensed milk, evaporated milk and other dairy products. Cheese, ice cream, milk and milk powder manufacturing is not included in the industry.

    Industry Products
  • Butter products
  • Proteins
  • 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
  • Butter shortage
  • 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
  • Proteins
  • Yoghurt
  • 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
    Saputo Dairy Australia Pty Ltd, Fonterra Co-operative Group Limited, Lactalis Australia Pty Ltd, Lion Pty Ltd,
  • Table: Saputo Dairy Australia Pty Ltd - financial performance
  • Table: Fonterra Co-operative Group Limited - financial performance
  • Table: Lactalis 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
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Casein
  • 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 offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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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