A moo point: Revenue is expected to grow, but may be threatened by a new subsidy system

The Dairy Cattle Raising industry produces raw milk through the, raising and milking of dairy cattle. The milk is sold to processors for pasteurisation, before either being used as liquid milk for consumption or turned into secondary products such as butter and cheese. Over the past five years, the industry has undergone volatility. The industry is heavily dependent on the farm-gate price received for raw milk. This price is determined by the global supply of pasteurised milk which, along with manufactured products that use milk as a main ingredient, is heavily involved in international trade, unlike raw milk itself...read 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

  • The industry has faced considerable volatility owing to fluctuations in the prices of milk
  • The elimination of milk quotas boosted industry competition and contributed to milk oversupply
  • A new subsidy system for farmers based on environmental protection is set to be phased in
  • Industry Report - Industry Investment Chapter

    The level of capital intensity in the industry is high. Depreciation, which is used as a proxy for wages, is estimated to account for 5.5% of industry revenue in the current year. Wages, which are used as a proxy for labour, are estimated to account for 5.9% of industry revenue. IBISWorld estimates that the industry has a capital-to-labour ratio of 1:1.07. This indicates that for every £1.00 that industry operators spend on capital, £1.07 is spent on labour.The agricultural sector as a whole is very capital intensive and little labour is needed. A modern dairy farm is usually equipped with automatic milking parlours that have significantly reduced the role of labour in the milking process and allowed farms to grow larger. Com...purchase to read more.

    Additional Insights for the Dairy Cattle Raising Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Dairy Cattle Raising Industry are

  • Appropriate climatic conditions
  • Prompt delivery to market
  • Output is sold under contract - incorporate long-term sales contracts
  • IBISWorld analysts also discuss how external factors such as Domestic price of milk and Liquid milk consumption per capita in the Dairy Cattle Raising industry impact industry performance..

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    What's in this report

    What is the Dairy Cattle Raising Industry?

    Farmers in this industry raise and breed dairy cattle to produce and sell raw milk to processors and manufacturers. The processing of raw milk and cream is excluded from the industry.

    Industry Products
  • Dairy cattle sales
  • Milk for liquid consumption
  • Milk for cheese processing
  • Milk for milk powder processing
  • Milk for yogurt processing
  • Milk for cream processing
  • Milk for butter processing
  • Milk for other processing
  • Industry Activities
  • Producing raw milk
  • Raising dairy cattle
  • 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
  • Liquid milk consumption per capita
  • Animal feed prices
  • Demand from butter and cheese production
  • Level of annual rainfall

  • Current Performance
  • Price volatility
  • Oversupply and competition
  • Structural change
  • Chart: Revenue Growth

  • Industry Outlook
  • Future funding
  • Labour concerns
  • The right direction
  • Table: Dairy Cattle Raising Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Milk & Cream Production
  • Butter & Cheese Production
  • Yoghurt & Other Dairy Product Processing
  • Consumers

  • Key Selling Industries
  • Agricultural & Forestry Machinery Manufacturing
  • Animal Feed Production
  • Veterinary Services

  • Products & Services
  • Milk for liquid consumption
  • Milk for cheese processing
  • Milk for milk powder processing
  • Milk for other processing
  • Dairy cattle sales
  • Milk for yogurt processing
  • Milk for cream processing
  • Milk for butter processing
  • Chart: Dairy Cattle Raising Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private dairies
  • Co-operative processing
  • Producer organisations
  • Consumers
  • Chart: Major Market Segmentation for the Dairy Cattle Raising Industry

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

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dairy Cattle Raising 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 Raising 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 Raising 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
    Automatic Milking Systems
  • Machinery that milks cattle without much human input.
  • Farm-Gate Milk Price
  • The price dairy farmers receive for raw milk.
  • Milk Quotas
  • EU regulation designed to protect farmers and cap milk production across Europe. The quotas expired on April 1 2015.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Dairy Cattle Raising market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Dairy Cattle Raising:
    • 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 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 Raising 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 Raising, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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