Dairy Product Production in Canada Industry Market Research Report Now Available from IBISWorld
New York, NY (PRWEB) April 01, 2014 -- The Dairy Product Production industry processes raw milk and manufactures dairy products including milk, cream, cheese, butter, yogurt and milk powder for consumption in the domestic market and, to a lesser extent, export markets. The industry experiences very little volatility because milk production at upstream dairy farms is strictly regulated in terms of both production and price. As such, the industry has very stable inputs and supplies to a market that considers its products grocery essentials (meaning downstream demand is steady). Consequently, industry revenue grows in line with inflation and growth of the overall economy. The past five years have been no exception, with industry revenue falling a nominal 0.2% per year on average to $14.9 billion in the five years to 2014, including a 0.8% drop in 2014.
Consolidation in the industry is rampant. According to IBISWorld Industry Analyst Antal Neville, “Faced with limited organic expansion opportunities due to a fixed supply of raw milk inputs, industry operators have attempted to grow revenue by way of mergers and acquisitions.” For example, two major milk cooperatives, Agropur and Farmers Co-operative Dairy, merged in 2013 to expand their geographic influence. Major player Saputo also acquired US dairy processor Morningstar Foods in 2013 to increase its revenue stream from the US market. As a result of consolidation activity, industry enterprises have fallen an annualized 2.4% to 845 in the five years to 2014.
In the five years to 2019, many producers will focus on growth in export markets. “Emerging economies like China, South Korea and the Philippines are rapidly increasing their demand for dairy, something Canadian dairy producers will attempt to take advantage of,” says Neville. This, combined with more purchases of premium high-margin products in the domestic market, is expected to lead revenue to grow an annualized 1.9% per year on average to $16.4 billion in the five years to 2019.
For more information, visit IBISWorld’s Dairy Product Production in Canada industry report page.
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IBISWorld industry Report Key Topics
The Dairy Product Production in Canada industry mainly manufactures dairy products, such as cream, butter, yogurt and cheese, as well as pasteurized, dry, condensed and evaporated milk. The industry also manufactures substitute dairy products made from soybeans and other nondairy ingredients. Frozen dairy products like ice cream and frozen yogurt are excluded from this industry.
Industry Performance
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Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
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Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld, +1 310-866-5042, [email protected]
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