High volatility in the international dairy market has greatly affected industry performance.
Los Angeles, CA (PRWEB) October 15, 2013
During the past five years, high volatility in the international dairy market, combined with the onset of the global financial crisis, has had a significant impact on the performance of the Global Milk and Cream Manufacturing industry. “Economic growth and rising affluence from the growing economies of Asia, South America and the Middle East led to a rapid increase in the demand for milk and dairy products,” according to IBISWorld Industry Analyst Jeffrey Cohen. This need was merged with falling supplies from traditional milk exporters, such as Australia and New Zealand, due to the adverse climatic conditions and high feed costs. Consequently, milk prices experienced historic highs over the past five years, which considerably aided revenue growth. During the five years to 2013, industry revenue is estimated to increase at an annualized rate of 0.9% to total $471.9 billion, and includes expected growth of 8.3% from 2012 to 2013.
The European Union (EU) has the highest milk production in the world, with fluid milk production at over 35 million metric tons. This is largely because of improvements in feeding, disease control and advancements in breeding. India is the second largest producer, when including its milk production from buffalo, followed by the United States and then China (further down on the production scale). “Within this industry, a number of consolidations have occurred during the past five years,” says Cohen. In fact, the number of enterprises is expected to decline at an annualized rate of 0.2% to 4,478, in the five years to 2013. Also, during this time the industry will experience a reduction in the number of employees at an average rate of 0.3% per year to 345,657.
Over the next five years, the industry's prospects will be tied to global economic conditions and recessionary recovery, domestic seasonal conditions in major exporting countries, and product innovation. Furthermore, the availability of pastures, feed costs, environmental costs of dairy production and trade liberalization policies will also affect the performance of operators in the industry.
For more information, visit IBISWorld’s Global Milk & Cream Manufacturing industry report page.
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IBISWorld industry Report Key Topics
The Global Milk and Cream Manufacturing industry comprises establishments are mainly engaged in grading, filtering and chilling fresh liquid whole milk or cream. Operators are also involved in manufacturing, bottling, or cartoning pasteurized liquid whole milk; flavored liquid whole or skim milk; liquid skim milk; liquid standardized milk; milk powder; cream; sour cream; or buttermilk.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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