Overview

Spilt milk: Current year revenue falls due to low domestic milk prices

IBISWorld’s Milk and Cream Processing 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.

REPORT SNAPSHOT

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. Rising demand for Australian milk in export markets has boosted industry earnings over the period. Industry revenue is expected to grow at an annualised 6.8% over the five years through 2016-17, to reach $2.2 billion. However, reduced domestic milk prices are expected to depress industry revenue by 3.0% in 2016-17. Industry profitability has fallen over the past five years as processors have been forced to absorb higher operating costs.

The ongoing milk war between the major supermarket chains, which has led to private-label milk products being priced at $1.00 per litre, has changed the way milk processors operate...

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Industry Report - Industry Investment Chapter

The Milk and Cream Processing industry is moderately capital intensive. For every dollar spent on wages, the average milk and cream processor is expected to invest $0.19 in capital items during 2016-17. Modern manufacturing plants require substantial 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 significant product diversity, which may require labour to perform certain non-core functions, especially the coordination of supply to downstream markets.

Capital intensity varies greatly among industry players. The..

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Industry Products

What is the Milk and Cream Processing Industry?

The Milk and Cream Processing industry primarily pasteurises and separates raw milk to make milk and cream products with varying levels of fat content. The industry excludes the manufacture of cultured buttermilk, flavoured milk (whole and skim), sour cream and yoghurt.

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
Ultra pasteurisation milk

Table of Contents

About this Industry

Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations

Competitive Landscape

Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
industry Globalisation

Major Companies

Operating Conditions

Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance

Key Statistics

Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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