Milk and honey: Strong export growth continues to benefit industry operators

The Milk and Cream Processing industry has grown strongly over the past five years, despite volatile conditions in the domestic market. Rising demand for Australian milk in export markets has boosted industry revenue over the period. Industry revenue is expected to grow at an annualised 10.0% over the five years through 2018-19, to $3.2 billion. This includes an anticipated rise of 1.2% in 2018-19, as both global and domestic dairy product prices are expected to continue recovering from the declines over the two years through 2015-16. However, industry profitability has fallen over the past five years, as processors have had to absorb higher operating more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Industry revenue has grown strongly over the past five years, despite volatile domestic conditions
  • Rising operating costs and retail-level price competition have reduced profit margins for many firms
  • Export markets are projected to provide growth opportunities over the next five years
  • Industry Report - Starting a New Business Chapter

    Industry barriers to entry are high, with the biggest threat for potential entrants being the well-entrenched position of the major players Lion, Parmalat, Fonterra and Murray Goulburn. These global players have high brand and customer loyalty, and considerable resources to invest in advertising and promotions to protect and grow market share. They also have long-term contracts with key suppliers, such as grocery stores and supermarkets, which are difficult for new firms to secure. These players' scales also lets them charge low prices for output, which new entrants may struggle to match.All of the industry's major players have strong product portfolios with many of the country's best-known dairy brands owned among them. Eno...purchase to read more.

    Additional Insights for the Milk and Cream Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Milk and Cream Processing Industry are

  • Market research and understanding
  • Use of specialist equipment or facilities
  • Use of production techniques that add value to base product(s)
  • IBISWorld analysts also discuss how external factors such as Domestic price of milk and Milk production in the Milk and Cream Processing industry impact industry performance..

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    What's in this report

    What is the Milk and Cream Processing Industry?

    Industry operators primarily pasteurise and separate raw milk to make milk and cream products with varying amounts of fat content. The industry excludes cultured buttermilk, flavoured milk (whole and skim), sour cream and yoghurt manufacturing.

    Industry Products
  • Whole milk
  • Low and reduced-fat milk
  • UHT milk
  • Cream
  • Industry Activities
  • Pasteurised cream (except canned)
  • Low-fat milk
  • Pasteurised milk
  • Skim milk
  • Whole milk
  • UHT milk
  • Table of Contents

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

  • Current Performance
  • Milk prices
  • Supermarket milk wars
  • Dairy inquiry
  • International trade
  • Production and demand
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand opportunities
  • Price and production
  • Future challenges
  • Table: Milk and Cream Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Milk and Cream Processing Industry Lifecycle vs The Economy

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

  • Key Selling Industries
  • Dairy Cattle Farming

  • Products & Services
  • Whole milk
  • Low and reduced-fat milk
  • UHT milk
  • Cream
  • Chart: Milk and Cream Processing Industry Products and Services Segmentation

  • Demand Determinants
  • Health concerns
  • Innovation

  • Major Markets
  • Supermarkets
  • Grocery wholesalers
  • Export markets
  • Convenience stores
  • Food-service establishments
  • Other
  • Chart: Major Market Segmentation for the Milk and Cream Processing 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 Milk and Cream Processing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Milk and Cream Processing Industry

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Milk and Cream Processing 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 Milk and Cream Processing Industry
  • 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)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Plant Sterol
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  • Private-Label
  • Products manufactured by one company for sale under another company's brand, typically a supermarket retailer. Private-label products tend to be cheaper than manufacturers' branded products.
  • Uht Milk
  • Milk that is heated at ultra-high temperatures during processing.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Milk and Cream Processing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Milk and Cream Processing:
    • 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 Milk and Cream Processing 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 Milk and Cream Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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