Industry Analysis & Industry Trends
The Dairy Product, Egg and Edible Oil Wholesaling industry plays an important role in the food supply chain. Wholesalers buy milk, cheese, yoghurt, cream, butter, eggs and oil from farmers and producers, then deliver them to retailers, such as supermarkets, for sale to consumers. During the past five years, the industry has operated in challenging conditions. The weak economic climate early in the five-year period, extremely volatile global dairy prices and changing consumer trends have acted to cut industry revenue and profitability.
The ongoing trend of wholesale bypass has also taken a heavy toll on the industry because supermarkets have strengthened their control of the supply chain and limited the involvement of specialist wholesalers... purchase to read more
Industry Report - Industry Investment Chapter
In 2015-16, IBISWorld estimates that the capital-to-labour ratio in the industry will be approximately 1:12.4. This suggest that industry producers require £12.40 worth of labour for every £1.00 worth of capital invested, indicating a low level of capital intensity. However, with purchase costs accounting for such a large amount of a typical wholesaler's cost structure, the proportions spent on both labour and depreciation are relatively low. Automation and IT technology are becoming more important for the industry, which tends to raise the rate of depreciation as high-tech equipment is usually depreciated over a much shorter time than buildings, leasehold improvements and capital equipment.
The level of capital intensity also varies among industry players. Uns.. purchase to read more