Industry Analysis & Industry Trends
Industry revenue is heavily dependent on selling raw milk to processors and manufacturers; raw milk sold is used in dairy products and consumed as drinking milk. Over the five years through 2011-12, industry revenue is anticipated to grow at an annualised rate of 5.4% per annum to total £3.84 billion. In the current year, revenue is forecast to grow 4.6%. The price of milk spiked in 2008-09, before falling back in 2009-10. Demand pressures on the global market have pushed prices upward again since 2010-11.
Volatility in the farmgate price of raw milk and increased costs for industry operators have hit margins and had a devastating effect on industry participation... purchase to read moree
Industry Report - Industry Analysis Chapter
The Dairy Cattle Raising industry has experienced difficulty over the five years through 2011-12, as it has contended with fluctuating farmgate prices of raw milk, falling establishment numbers, increased costs and weak margins. Over the five-year period, IBISWorld estimates this somewhat volatile industry revenue has grown at an annualised rate of 5.4% per annum. Much of this growth can be attributed to high raw milk farmgate prices in 2007-08, which then plummeted following the global financial crisis. Milk prices have since recovered and this has helped revenue. Revenue is anticipated to reach £3.84 billion over 2011-12, growing 4.6% from the previous year... purchase to read more