Spilled milk: The threat of imports will limit growth, but consolidation will drive profit

The Dairy Farms industry is growing steadily. Though there was some fluctuation over the five years to 2018, including a tepid 0.2% increase in 2018, industry revenue has increased at an annualized rate of 0.8% to $6.5 billion. Though increased consumer spending over the period created demand for fresh dairy products, that demand was negated by a trend toward nondairy substitutes such as almond and cashew milk. The potential for increased imports has begun to pose a significant threat to the industry. As a result of the controlled nature of the Dairy Farms industry in Canada, the industry is expected to grow at a slow rate over the next five years...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 13-18
0.8%
Forecast Growth 18-23
Profit
Employment
17,941
Businesses
11,585
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Interest in reduced tariffs has threatened domestic dairy farmers
  • Milk and other dairy products are competing with other beverage and snack products
  • International trade for this industry has been shaped by the nation’s supply management system
  • Industry Report - Industry Key Buyers Chapter

    Although the Dairy Farms industry has exhibited consolidation over the past five years, an overwhelming majority of Canadian dairy farms are family operated. To this end, the industry's market share concentration is low and is not expected to exhibit notable growth over the next five years. However, the industry is projected to continue consolidating over the next five-year period as farms become increasingly automated. According to the Canadian Census of Agriculture, less than 9.0% of dairy farms use robots in their daily operations, demonstrating the slow pace of industry operations. Without the incorporation of crucial technological innovations like milking machines, market share concentration is projected to remain low...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..

    shopping_cartPURCHASE OPTIONS

    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 production
  • Milk byproducts
  • Concentrated milk products
  • 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
  • Consolidation drives profit
  • Production, consumption and demand
  • Imports posing a threat
  • Chart: Revenue Growth

  • Industry Outlook
  • Trade and competition
  • Consolidation and profit
  • Downstream demand
  • 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
  • Milk byproducts
  • Fluid milk production
  • Concentrated milk products
  • Chart: Dairy Farms Industry Products and Services Segmentation

  • Demand Determinants
  • Population
  • Healthy habits

  • Major Markets
  • Federation des producteurs de lait du Quebec
  • Dairy Farmers of Ontario
  • Prairie provinces
  • West Coast
  • Atlantic region
  • Exports
  • 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
    ProfitPurchasesWagesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Dairy Farms

  • Basis of Competition
  • Internal competition
  • External 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Number of Dairy Cows (2009-2023)

  • 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?

    IBISWorld’s Dairy Farms market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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.

    Contact Us

    Want to speak to a representative? Call us.

    clear