AUSTRALIA: National Foods warns that de-regulated dairy industry will struggle
In an annual report released recently, dairy group National Foods has warned that, "the current retail milk pricing is unsustainable in the longer term given the dairy industry's costs." Aggressive discounting by supermarket retailers has placed huge pressure on the company, and forced a series of cost savings. "We have initiated a program to further reduce the company's operating overhead costs, as well as our milk input costs by working closely with our suppliers," the report continued.The dairy industry in Australia has recently been de-regulated and according to National Foods this means that, "one thing is clear… industry consolidation will occur sooner rather than later." It also means that for the coming year, the company will focus primarily on attempts to consolidate its manufacturing operations. National Foods has, however, also expressed its intention to bid for market leadership through product innovation.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-food gives you the widest food market coverage.
Paid just-food members have unlimited access to all our exclusive content - including 16 years of archives.
It’s our best ever membership offer – just for you.
Dean Best, editor of just-food
- Unilever 2016 investor day - the top takeaways
- The key questions for digital strategists in 2017
- Have food promotions reached tipping point?
- How Tyson's new CEO plans to grow the meat group
- Mondelez goes beyond certified cocoa - analysis
- Nestle unveils process to cut sugar by 40%
- Unilever focuses on "value" of spreads arm
- Unilever sets new margin target with help from ZBB
- Japan's Nagatanien buys Chaucer Food Group
- B&G acquires pasta sauce group Victoria Fine Foods