Milking it: Fresh milk exports to China are providing a growth area for the industry

The Dairy Cattle Farming industry has faced a range of challenges over the past five years, including demand fluctuations, global market shifts and fluctuating farmgate prices. Plummeting global dairy prices heavily influenced the industry's performance over the three years through 2016-17. However, dairy prices are expected to recover over the two years through 2018-19, which will benefit dairy farms. Overall, industry revenue is expected to fall at an annualised 1.8% over the five years through 2018-19, to $4.5 billion. National dairy herd numbers are expected to increase during 2018-19, which is likely to boost national milk production in the current year. These trends, coupled with higher farmgate prices for raw milk, are expected to increase industry revenue by 3.1% in more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Wide fluctuations in domestic and global dairy prices have made industry revenue more volatile
  • Farmgate milk prices are largely determined by major dairy processors, such as Fonterra
  • Farmgate milk prices are forecast to rise over the period, boosting industry revenue
  • Industry Report - Starting a New Business Chapter

    Historically, the Dairy Cattle Farming industry was characterised by a high degree of regulation. Quotas were applied to the supply of drinking milk and the price was regulated. However, the deregulation of the industry in 2000 removed these obstacles and there are now no formal barriers to entry other than licences. These are obtained from state authorities and cover a range of food safety regulations and standards.Technical knowledge of milk production, such as that required for using testing equipment, is not a significant barrier to entry. However, it can affect the viability of dairy farming in the long term. The inherent volatility in industry revenue – due to climatic conditions and fluctuations in world prices – may deter potential entrants. Add...purchase to read more.

    Additional Insights for the Dairy Cattle Farming Industry

    IBISWorld has determined the most important Key Success Factors for the Dairy Cattle Farming are:

  • Economies of scale
  • Superior financial management and debt management
  • Appropriate climatic conditions
  • IBISWorld analysts also discuss how external factors such as Domestic price of milk and Milk production in the Dairy Cattle Farming industry impact industry performance..

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    What's in this report

    What is the Dairy Cattle Farming Industry?

    Operators in the Dairy Cattle Farming industry raise and milk dairy cattle. The industry is made up of numerous small dairy farms that produce raw milk. These farms are mostly family owned and operated.

    Industry Products
  • Milk for manufacturing
  • Drinking milk
  • Cattle
  • Industry Activities
  • Dairy cattle farming
  • Raw cattle milk production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic price of milk
  • Milk production
  • Level of annual rainfall
  • Milk consumption
  • Domestic price of coarse grains
  • Electricity service price

  • Current Performance
  • Milk prices
  • Downstream markets
  • Chart: Revenue Growth

  • Industry Outlook
  • Milk production
  • International influences
  • Industry landscape
  • Table: Dairy Cattle Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Dairy Cattle Farming Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Milk and Cream Processing
  • Ice Cream Manufacturing
  • Butter and Dairy Product Manufacturing
  • Cheese Manufacturing
  • Milk Powder Manufacturing

  • Key Selling Industries
  • Agricultural Machinery Manufacturing
  • Prepared Animal and Bird Feed Manufacturing
  • Shearing, Cropping and Agricultural Support Services
  • Veterinary Services

  • Products & Services
  • Milk for manufacturing
  • Drinking milk
  • Cattle
  • Chart: Dairy Cattle Farming Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other dairy product manufacturers
  • Cheese manufacturers
  • Milk processors
  • Farms and abattoirs
  • Chart: Major Market Segmentation for the Dairy Cattle Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Dairy Cattle Farming

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dairy Cattle Farming Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Dairy Cattle Farming Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Dairy Cattle Farming Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • The predominant protein in cow milk and cheese.
  • Dairy Co-Op
  • A cooperative owned by a group of dairy farmers enabling them to supply bulk milk volumes.
  • Dairy Products
  • Foodstuffs made from milk, such as cheese, yoghurt, butter and cream.
  • El Nino
  • A recurring weather pattern that typically causes drought conditions across the eastern states of Australia.
  • Farmgate Milk Price
  • The price that a dairy farm receives for its milk.
  • Fodder
  • Roughage, such as hay, fed to livestock.
  • Imputed Wage
  • The estimated labour input of the farm owner, their partner and/or family members, based on hours worked and wages outlined in the Federal Pastoral Industry Award.
  • Milk Tier
  • Milk supplies are divided into separate volumes and priced separately. Tier 1 milk is the volume the farmer is contracted to produce. Tier 2 is additional milk produced, beyond the contracted amount.
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    Why buy this report?

    IBISWorld’s Dairy Cattle Farming market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
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    This report on Dairy Cattle Farming:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Dairy Cattle Farming market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Dairy Cattle Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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