Say cheese: Global dairy product prices are forecast to recover as the global supply glut eases

Operators in the Dairy Cattle Farming industry have endured turbulent conditions over the past five years. Volatile external factors such as weather patterns, global production and price movements have caused industry revenue to fluctuate significantly over the period. Industry revenue peaked in 2013-14 due to strong demand and rising prices, but fell over the two years through 2015-16 as falling prices in global markets put downward pressure on domestic milk prices. Prices have since improved and industry revenue is expected to rise at an annualised 0.8% over the five years through 2019-20, to $14.8 billion.Dairy farmer revenue depends heavily on milk production and the domestic price of milk. National milk production has fluctuated over the past five years...read more.

Industry Statistics & Market Size
Revenue
$15bn
Annual Growth 15-20
0.8%
Forecast Growth 20-25
Profit
Employment
24,793
Businesses
13,851
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Fluctuations in global dairy prices and production levels heavily influence the industry
  • Growing demand for dairy products in Asia has provided an opportunity for industry growth
  • Industry profitability is anticipated to improve due to rising global dairy prices
  • Industry Report - Industry Investment Chapter

    The Dairy Cattle Farming industry is highly capital intensive. For every dollar spent on wages, the average industry player is estimated to invest $0.84 in capital equipment in 2019-20. Most industry operators use automated milking machines. These machines can be highly sophisticated and can collect data, such as cattle weight, size and milk quality, which helps staff assess cattle health. Industry operators also use automated feeding systems that control the type of stockfeed dairy cattle receive, along with what time of day and how frequently cattle receive feed. Electronic identification tagging is commonly used throughout the industry, which further contributes to the industry's high capital intensity...purchase to read more.

    Additional Insights for the Dairy Cattle Farming Industry

    IBISWorld has determined the most important Key Success Factors for the Dairy Cattle Farming are:

  • Superior financial management and debt management
  • Appropriate climatic conditions
  • Output is sold under contract - incorporate long-term sales contracts
  • IBISWorld analysts also discuss how external factors such as Domestic price of milk and Demand from cheese, butter and milk powder manufacturing in the Dairy Cattle Farming industry impact industry performance..

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    What's in this report

    What is the Dairy Cattle Farming in New Zealand Industry?

    Industry operators primarily farm dairy cattle. The industry excludes operators that primarily undertake cattle agistment services.

    Industry Products
  • Milk and cream concentrates
  • Other dairy products
  • Cattle
  • Drinking milk and cream
  • Industry Activities
  • Dairy cattle farming
  • Raw cattle milk production
  • 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
  • Demand from cheese, butter and milk powder manufacturing
  • Milk production
  • Level of annual rainfall

  • Current Performance
  • Domestic production
  • Price problems
  • Profit and structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Price recovery
  • Farm production
  • The bottom lines
  • Table: Dairy Cattle Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Dairy Cattle Farming Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Milk and Cream Processing in New Zealand
  • Ice Cream Manufacturing in New Zealand
  • Cheese, Butter and Milk Powder Manufacturing in New Zealand

  • Key Selling Industries
  • Agricultural and Construction Machinery Wholesaling in New Zealand
  • Shearing, Cropping and Agricultural Support Services in New Zealand
  • Veterinary Services in New Zealand

  • Products & Services
  • Milk and cream concentrates
  • Other dairy products
  • Cattle
  • Drinking milk and cream
  • Chart: Dairy Cattle Farming Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Concentrated milk product manufacturers
  • Butter and cheese manufacturers
  • Other dairy product manufacturers
  • Farms and abattoirs
  • Chart: Major Market Segmentation for the Dairy Cattle Farming 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 Dairy Cattle Farming

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dairy Cattle Farming Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Dairy Cattle Farming 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 Dairy Cattle Farming Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Anhydrous Milk Fat
  • An evaporated butter product mostly comprising milk fat, which is also referred to as butter oil.
  • Milk Solids
  • Content remaining after removing water from raw milk, such as lactose, caseins, whey proteins and trace minerals. Higher milk solid content results in better quality raw milk.
  • Stockfeed
  • Processed feed purchased for cattle, such as grain blends and hay.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Dairy Cattle Farming in New Zealand 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 Dairy Cattle Farming in New Zealand:
    • 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 Dairy Cattle Farming in New Zealand 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 Dairy Cattle Farming in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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