Spilled milk: Downstream demand for other dairy products has bolstered industry revenue

The Dairy Farms industry in Canada consists of farms that primarily raise cattle for milking, and the majority of industry revenue comes from the sale of milk to dairy processors. While consumer spending rose, fluid milk consumption has fallen in recent years in favour of substitutes, cutting into demand for one of the industry's primary products. One key feature of the industry over the past five years has been a steady consolidation. The number of domestic dairy farms has fallen each year over the past decade, as smaller farms have closed or sold their land to larger organizations. As a result of the controlled nature of the industry, the industry is expected to continue to grow at a slow rate over the five years to 2024...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

  • Demand for industry products fell due to increased demand for milk subsistutes
  • Canada’s stringently regulated dairy industry enables farmers to thrive
  • The industry has been characterized by a persistent decline in participation
  • Industry Report - Industry Investment Chapter

    The Dairy Farms industry in Canada exhibits a high level of capital intensity, typically higher than the rest of the agricultural sector. Dairy farming operations require substantial amounts of capital equipment, including milking machines, feeding systems, waste management equipment and computerized monitoring tools. Labour is required to operate the milking machines, caring for the herd and managing farm operations, such as feeding strategies, quality control measures and investments. However, wages typically comprise a negligible share of revenue, resulting in a high level of capital intensity in proportion to labour. As a result, for every dollar spent on labour, $0.95 is spent on capital in 2019. The...purchase to read more.

    Additional Insights for the Dairy Farms Industry

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

  • Economies of scale
  • Use of specialist equipment or facilities
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Number of children aged 19 and younger and Consumer spending in the Dairy Farms industry impact industry performance..

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    What's in this report

    What is the Dairy Farms Industry?

    This industry primarily milks dairy cattle. Dairy cattle are raised for both milking and meat production, but raising, feeding and fattening cattle as dairy herd replacements are excluded from the industry.

    Industry Products
  • Fluid milk
  • Industrial milk
  • Sales of livestock
  • Industry Activities
  • Fluid milk production
  • Industrial milk production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of children aged 19 and younger
  • Consumer spending
  • Demand from dairy product production
  • Demand from ice cream production
  • Price of feed

  • Current Performance
  • Production, consumption and demand
  • Consolidation and structure
  • Minimal but rising trade activity
  • Chart: Revenue Growth

  • Industry Outlook
  • Consolidation and profit
  • Downstream demand
  • Trade and competition
  • Technology trends
  • Table: Dairy Farms Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Dairy Product Production in Canada
  • Ice Cream Production in Canada

  • Key Selling Industries
  • Animal Feed Production in Canada
  • Beef Cattle Production in Canada
  • Farm, Lawn & Garden Equipment Wholesaling in Canada
  • Fertilizer Manufacturing in Canada
  • Veterinary Services in Canada

  • Products & Services
  • Industrial milk
  • Fluid milk
  • Other
  • Sales of livestock
  • Chart: Dairy Farms Industry Products and Services Segmentation

  • Demand Determinants
  • Population
  • Healthy habits

  • Major Markets
  • Quebec
  • Ontario
  • British Columbia
  • Alberta
  • Other provinces
  • Manitoba
  • Chart: Major Market Segmentation for the Dairy Farms Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Dairy Farms

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dairy Farms 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 Farms 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 Farms Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Number of Dairy Cows (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Industrial Milk
  • Raw milk that is used as an input in for dairy products.
  • Organic
  • A farming system that does not involved the use of artificial chemicals, pesticides, fertilizers or genetically modified organisms.
  • Raw Milk
  • Milk that has not been pasteurized or homogenized.
  • Tariff Rate Quota
  • A tariff that goes into effect after a certain quantity of a product is imported into a country.
  • What Our Customers Say

    Why buy this report?

    The Dairy Farms market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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
    • Quickly build competitive intelligence
    This report on Dairy Farms:
    • 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 of 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 Farms 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 Farms, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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