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Dairy Product Production in the US Industry Market Research Report from IBISWorld Has Been Updated
Date:11/29/2013

Los Angeles, CA (PRWEB) November 28, 2013

Over the past five years, the Dairy Product Production industry has benefited from the increasing popularity of yogurt and cheese products in the United States and abroad, which has offset declining fluid milk consumption. In addition, dairy producers have largely been able to pass along raw milk costs to consumers, which increased in the five years to 2013. While demand for some industry products increased over the past five years, an exception to this trend occurred in 2009, when industry revenue experienced a drop. This decline was due to an overall reduction in consumer spending, as a result of the recession, falling raw milk prices and a decrease in global demand. Overall, industry revenue is expected to grow over the five years to 2013.

According to IBISWorld Industry Analyst Antal Neville, “The Dairy Product Production industry has a low level of market share concentration.” A diverse range of private and public companies, dairy cooperatives and multinational food corporations undertake dairy production. Also, the industry produces a wide array of products, such as milk, cheese and yogurt, thus making overall industry revenue relatively large compared with other food industries. Dairy producers may focus their operations on one particular commodity, such as cheese or butter, or diversify their activities to make a range of dairy products. For example, Kraft focuses its dairy production on cheese.

Dairy product wholesalers and retailers have consolidated during the past five years in an effort to compete more effectively for national supply contracts from dairy producers, which cut costs related to purchasing dairy products. Increased concentration in downstream markets required producers to su
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