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Milk and honey: The industry will benefit from stabilizing milk prices and improved downstream demand



Dairy Farms in the US

Over the five years to 2016, the price of raw milk has been highly volatile, causing revenue for the Dairy Farms industry to fluctuate. In 2011, the price of milk bounced back from the recession and pushed up by increasing global demand, causing revenue to rise. In 2016, an oversupply of dairy products is expected to cause revenue to decline further. Yet, despite all the volatility, the industry is expected to grow over the five years to 2016. Meanwhile, the price of feed, which typically makes up about half of the average dairy farm’s total expenses, has been falling since 2014, significantly strengthening industry profit margins. However, the price of feed had increased leading up to 2014, causing many farms to either reduce their employment or exit the market. Over the five years to 2021, the industry will likely benefit from stabilizing milk prices and improved downstream demand. Government assistance will continue to support profit, while continued economic recovery and population growth will drive demand for dairy products.


Establishments in this industry primarily raise cattle for milk. The industry includes only the sale of raw milk and excludes the production of drinkable fluid milk and processed dairy products like butter, cheese and powdered milk. Those value-added activities are covered in the Dairy Product Production industry (IBISWorld report 31151).

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.



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Dairy Product Production in China

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Dairy Cattle Farming in Australia

Table Of Contents

Dairy Farms in the US - Industry Market Research Report

TABLE OF CONTENTS

ABOUT THIS INDUSTRY
Industry Definition
Main Activities
Similar Industries
Additional Resources

INDUSTRY AT A GLANCE

INDUSTRY PERFORMANCE
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

PRODUCTS and MARKETS
Supply Chain
Products and Services
Demand Determinants
Major Markets
International Trade
Business Locations

COMPETITIVE LANDSCAPE
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalization

MAJOR COMPANIES

OPERATING CONDITIONS
Capital Intensity
Technology and Systems
Revenue Volatility
Regulation and Policy
Industry Assistance

KEY STATISTICS
Industry Data
Annual Change
Key Ratios

JARGON and GLOSSARY

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Related Market Segments :

Milk
Dairy Farming

ref:plp2016

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