The industry experiences very little volatility because milk production at upstream dairy farms is strictly regulated in terms of both production and price. As a result, the industry has very stable inputs and supplies to a market that considers its products grocery essentials (meaning downstream demand is steady). However, milk consumption has decreased in Canada over the past five years. Consequently, industry revenue has declined.
In the five years to 2021, many producers will focus on growth in export markets. Emerging economies are rapidly increasing their demand for dairy, a trend Canadian dairy producers will attempt to take advantage of. This, combined with more purchases of premium high-margin products in the domestic market, is expected to lead revenue to grow in the five years to 2021.
This industry mainly manufactures dairy products, such as cream, butter, yogurt and cheese, as well as pasteurized, dry, condensed and evaporated milk. The industry also manufactures substitute dairy products made from soybeans and other nondairy ingredients. Frozen dairy products such as ice cream and frozen yogurt are excluded from this industry.
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.