The Dairy Produce Wholesaling industry has benefited from increases in world dairy prices over the past five years, but has been adversely affected by a fall in industry production. Declines in milk production have occurred because of drought conditions, and dairy production in Australia and New Zealand has subsequently decreased. The industry's performance has also been impeded by the effect of wholesale bypass, as strong increases in oil prices have affected profitability. IBISWorld estimates that industry revenue will increase by 2.6% per annum over the five years through 2012-13. This includes a forecast decrease of 0.6% in 2012-13, to total $6.15 billion.
This industry consists of businesses that primarily wholesale dairy products. Dairy products include milk, cheese, cream, butter, yoghurt, powdered milk, dairy desserts and ice cream. This industry is made up of three different types of wholesalers: manufacturing companies that wholesale direct to clients, wholesalers that are the intermediary between manufacturers and retailers (merchant retailers), and wholesalers that are integrated downstream into retail.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.