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I work on the dairy industry. Can you please recommend an updated report about the state of the industry and market opportunities?

Good day,

Thank you for submitting your request.

Our database has some reports on the dairy industry that can meet your needs.  Below are the most recent and relevant.

Report 1 – “Dairy: World Markets and Trade”, United States Department of Agriculture, December 2015.

This report can offer a general view about the state of the dairy industry in the United States. It shows how dairy markets will continue to struggle due to weak import demand and excess supplies. Low prices of milk are expected also to restrain the growth. Milk output will increase only by less than one percent.

“Although the pace of increasing milk production is forecast to slow, prices for such dairy products as skimmed milk powder (SMP) and whole milk powder (WMP) are expected to remain relatively weak. These products face strong headwinds due to the continuation of the Russian ban on imports of dairy products, the strong dollar, and weak import demand from China. Absent a change in these variables or the onset of unfavorable weather, prices will likely not improve significantly in the first half of 2016.”

— United States Department of Agriculture, December 2015.

 

Report 2 – “Got growth? Opportunities and challenges for U.S. Dairy industry”, McKinsey&Co, January 2016.

This study shows several opportunities and challenges that milk producers will have to face to assure growth in their industry. One of them is the need to introduce a constant stream of novel products. As this market is highly competitive, the innovation is the key to differentiate from the concurrence.  As we can see it in the following figure, dairy is one of the most prolific industries in terms of new introductions to the market, and dairy products are losing share to non-traditional alternatives.

dairy market industry

— McKinsey&Co, January 2016.

 “Dairy companies have the opportunity to redefine their identity to add non-traditional alternatives to their product portfolio and serve a broader consumer base. Executing on this strategy requires companies to deploy the appropriate amount of capital and resources to new fast growing businesses.”

— McKinsey&Co, January 2016.

 

I hope you find this useful, and can see that there is a lot of useful information available through the portal about the food industry. If you have any additional needs or questions about our reports, please feel free to contact us.