Milking it: Strong growth in export markets and rising milk consumption support revenue

Various factors have influenced the Milk and Cream Processing industry 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. However, plummeting demand for low-margin dairy products in 2013-14 adversely affected the industry's five-year revenue performance. Industry revenue is expected to fall at an annualised 3.9% over the five years through 2017-18, to total $954.9 million. Industry revenue is projected to increase by more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Rising incomes and an increasing desire for high-quality fresh milk have boosted exports to China
  • An increasing focus on value-added products has helped boost margins over the period
  • The industry is expected to remain highly reliant on export markets over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The industry is characterised by high market share concentration, with the four largest operators expected to make up over 75% 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 three players. As a result, industry market share concentration has remained relatively stable over the past five years...purchase to read more.

    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

  • Having links with suppliers
  • Market research and understanding
  • Use of production techniques that add value to base product(s)
  • IBISWorld analysts also discuss how external factors such as Milk production and Domestic price of milk in the Milk and Cream Processing industry impact industry performance..

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    What's in this report

    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
  • Cream
  • Industry Activities
  • Cream
  • Raw milk pasteurisation
  • Skim, low-fat and full-cream milk
  • Ultra heat treatment (UHT) milk
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Milk production
  • Domestic price of milk
  • Trade-weighted index
  • 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

  • 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
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Milk and Cream Processing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Milk and Cream Processing Industry

  • Industry Globalization
    Fonterra Co-operative Group Limited,
  • Table: Fonterra Co-operative Group Limited - financial performance

  • 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
    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
    Organic Milk
  • Milk that has been produced from cows 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Milk and Cream Processing in New Zealand market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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