Cash cow: Strong export revenue growth and rising milk consumption have supported the industry

IBISWorld’s Milk and Cream Processing 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.


Industry Analysis & Industry Trends

The Milk and Cream Processing industry has fared well over the past five years. The industry has benefited from strong export revenue growth over the period, as milk and cream exports have largely been insulated from weak global prices affecting most other dairy products. Milk and cream processors have also benefited from rising per capita milk consumption and increasing sales of high-value food-service and consumer goods in the domestic market. Industry revenue is expected to increase at a compound annual rate of 3.2% over the five years through 2017-18, to total $833.5 million. This growth is slightly understated, due to a low base year when the industry suffered revenue declines. Industry revenue is projected to increase by 1.0% in 2017-18, due to slowing domestic milk price growth...

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Industry Report - Industry Key Buyers Chapter

The industry is characterised by high market share concentration, with the four largest operators expected to make up nearly 90% of industry revenue. Since the formation of Fonterra in 2001, the company has controlled the majority of milk and cream processing activity. The substantial quantity of dairy cattle farmers that are shareholders in Fonterra keeps the company's market share high. Over the past five years, some farmers have left the cooperative to seek better pricing arrangements for their product. However, most of these farmers have joined other cooperatives or milk and cream processors that are among the top four players. Consequently, industry market share concentration has remained relatively stable over the past five years.


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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

  • Economies of scale
  • Having links with suppliers
  • Market research and understanding
  • IBISWorld analysts also discuss how external factors such as Trade-weighted index and Domestic price of milk in the Milk and Cream Processing industry impact industry performance..

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    New Zealand Special Report

    Industry Products

    What is the Milk and Cream Processing in New Zealand Industry?

    Operators in the industry process raw milk. Processes include pasteurisation of milk and separation to produce milk and cream with varying fat content.

    Industry Products
    Whole milk
    Reduced-fat milk
    UHT milk
    Industry Activities
    Raw milk pasteurisation
    Skim, low-fat and full-cream milk
    Ultra heat treatment (UHT) milk

    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
  • Trade-weighted index
  • Domestic price of milk
  • Milk production
  • Demand from general line grocery wholesaling

  • Current Performance
  • International influences
  • New product mix
  • Profit and structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Milk supply
  • International markets
  • Domestic market
  • 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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • General Line Grocery Wholesaling in New Zealand
  • Supermarkets, Grocery Stores and Convenience Stores in New Zealand
  • Cafes and Restaurants in New Zealand
  • Catering Services in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Dairy Cattle Farming in New Zealand

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

  • Demand Determinants
    Major Markets
  • Exports
  • Wholesalers
  • Supermarkets and grocery stores
  • Food-service establishments
  • Food and beverage processors
  • Other markets
  • Chart: Major Market Segmentation for the Milk and Cream Processing 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 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
    Major Companies
    Fonterra Co-operative Group Limited
  • Table: Fonterra Co-operative Group Limited - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Milk and Cream Processing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Organic Milk
  • Milk that has been produced from cos that have been raised organically, using no chemicals or pesticides.
  • Pasteurised Milk
  • Milk that has been heat treated and is suitable for human consumption.
  • Uht
  • An ultra-high temperature treatment process for milk or cream to extend shelf life.
  • 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 Milk and Cream Processing 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 Milk and Cream Processing 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 Milk and Cream Processing 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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