Overview

Going sour: A global supply glut over 2013-14 caused industry revenue to plummet

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.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$13bn
Annual Growth
2013 - 2018
-0.5%
Annual Growth
2018 - 2023
Profit
Employment
27,835
Business
16,688

Industry Analysis & Industry Trends

The Dairy Cattle Farming industry has endured a turbulent five-year period. Volatile external factors, including weather patterns, global production and price movements, have caused revenue to fluctuate significantly over the past five years. Industry players benefited from strong demand and skyrocketing prices in 2013-14, but revenue then plummeted over the two years through 2015-16 as falling prices in global markets put downward pressure on local farmgate prices. The industry is expected to contract at an annualised 0.5% over the five years through 2017-18, to total $13.1 billion.

Dairy farmer revenue depends on milk production and farmgate milk prices. National milk production has fluctuated over the past five years, but has trended upwards overall...

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Industry Report - Industry Products Chapter

The Dairy Cattle Farming industry's main source of revenue is from selling raw milk. Several breeds of dairy cattle produce milk for downstream processors and consumers. A small portion of industry revenue is also derived from sales of live dairy cattle to other farms and abattoirs for meat processing. As raw milk sold by dairy farmers is largely homogenous, industry products are split according to how the milk is processed.

Milk and cream concentrates

Almost half of milk produced by dairy farmers is sold to manufacture concentrated milk and cream products, such as powdered whole and skim milk, cream, buttermilk and infant formulas. Much of the output from downstream milk and cream concentrate manufacturers is then sold to export markets. Dai..

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Additional Insights for the Dairy Cattle Farming Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Dairy Cattle Farming Industry 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 Farmgate milk price and Demand from cheese, butter and milk powder manufacturing in the Dairy Cattle Farming industry impact industry performance..

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    New Zealand Special Report

    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Farmgate milk price
  • 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 line
  • Table: Dairy Cattle Farming Industry Revenue Outlook

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

  • Products & Markets
    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
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Dairy Cattle Farming

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Dairy Cattle Farming Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    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.
  • Why buy this report?

    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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