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, conditions in the industry have been challenging. A slow economic climate early in the five-year period, extremely volatile global dairy prices throughout the period 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 2016-17, IBISWorld estimates that the capital-to-labour ratio in the industry will be approximately 1:5.76. This suggest that industry producers require £5.76 worth of labour for every £1.00 worth of capital invested, indicating a moderate 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.
Key areas of capital expenditure include refrigerated warehousing and delivery vehicles. Automation and the introduction of IT systems are becoming increasingly important and prominent in the industry as operators have sought to reduce labour costs. IT .. purchase to read more