Industry Analysis & Industry Trends
Demand for dairy products will remain stable, as a postrecession rise in disposable income facilitates industry growth. Nevertheless, wholesalers will have to contend with the increasingly common practice of wholesale bypass. Further, per capita dairy consumption will remain relatively flat, constraining profitability... purchase to read more
Industry Report - Starting a New Business Chapter
This industry is subject to moderate barriers to entry, with the biggest impediment being the initial cost of establishing warehousing and distribution systems. The major capital cost to enter the industry is the purchase of refrigerated vans and storage facilities to store and transport dairy products. Refrigeration is essential because of the highly perishable nature of most dairy products. New entrants also need to invest in electronic inventory systems and computerized tracking software.
The dominance of the industry's major players also makes up a slight barrier to entry... purchase to read more