Industry Analysis & Industry Trends
The Butter and Cheese Production industry has faced pressure from highly volatile input prices over the past five years. However, the persistent popularity of Cheddar cheese, ongoing product innovation and industry consolidation have extended the industry's shelf life. The rich history of cheese production in the United Kingdom has proved hugely beneficial to the industry, since provenance has become increasingly important to domestic consumers, while butter has exhibited a resurgence in popularity in recent years. Despite this, over the five years through 2016-17, industry revenue is estimated to contract at a compound annual rate of 4.5% to £2.7 billion.
The industry has been forced to contend with highly volatile milk prices over the five-year period through 2016-17... purchase to read more
Industry Report - Industry Investment Chapter
The Butter and Cheese Production industry has a high level of capital intensity. IBISWorld estimates that for every £1.00 spent on capital, £1.99 is spent on labour. The industry's high level of capital intensity reflects its need for machinery, research and development, and storage facilities for the assembly and manufacturing of products. Modern manufacturing plants require high levels of capital expenditure on sophisticated technology and equipment to increase productivity without the need for additional labour. It is also reflective of the trend towards industrially produced cheeses, a move away from hand crafted and artisanal cheese production, similar to trends found in the bread and bakery industry in the United Kingdom and around Europe.
.. purchase to read more