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 is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.


Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Annual Growth
2013 - 2018
Annual Growth
2018 - 2023

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 - Starting a New Business Chapter

Barriers to entry in the Dairy Cattle Farming industry are moderate. Although dairy farmers must comply with animal welfare and food safety regulations, this does not result in significant capital outlay or knowledge requirements. The bulk of initial capital outlay for new entrants relates to land, cattle and machinery. This can be highly expensive and typically encourages new entrants to remain in the industry, despite volatility. New entrants may also require knowledge or expertise in technical processes, such as herd testing and milking procedures. Additionally, the industry's inherent volatility due to its exposure to global dairy market conditions may deter potential entrants. Sup..

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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
    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
  • 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
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    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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