Strategic Assessment of the European Dairy Industry Outlook

Table of Contents

C h a p t e r 1

Executive Summary

Industry Overview 1-1

Introduction and Study Highlights 1-1

Research Scope and Methodology 1-2

Scope of the Study 1-2

Research Methodology 1-2

C h a p t e r 2

Industry Overview

Introduction 2-1

Summary 2-1

Dairy Market Trends 2-2

Milk 2-3

Milk Powder 2-4

Cheese 2-5

Butter 2-6

Fresh Dairy Products 2-6

Demand Analysis 2-7

Demand 2-7

Geographical Insight 2-9

The Netherlands 2-9

United Kingdom 2-11

Geographical Insight 2-13

Germany 2-13

Denmark 2-16

Competitive Landscape 2-18

Porter's Five Forces 2-18

C h a p t e r 3

Industry Structure

Dairy Industry Structure 3-1

Supply Chain Analysis 3-1

Farmers and Co-operatives 3-2

Processors 3-3

Retailers 3-4

Industry Dynamics 3-5

Mergers and Acquisitions 3-5

Industry Dynamics 3-8

Industry Associations 3-11

European Dairy Association (EDA) 3-11

Association of the Processed Cheese Industry in the EU (ASSIFONTE) 3-11

European Association of Dairy Trade (EUCOLAIT) 3-12

European Federation of Butter Processing Industries (TRANSBEUROP) 3-12

Global Dairy Platform (GDP) 3-12

Regulatory Scenario 3-12

Budget Constraints and Quota System 3-13

CAP Reforms 3-13

MacSharry Reforms (1992) 3-13

2003 Mid-Term Review 3-14

Dairy Industry Reforms 3-14

C h a p t e r 4

Industry Challenges

Key Industry Challenges 4-1

Challenges 4-1

Growth of the Private Label Sector Challenges Dairy Processors 4-2

Consolidation within the Dairy Industry Threatening the Existence of Smaller Dairy Firms 4-2

Threat from Substitution 4-3

Regulatory Restriction Threaten the Growth of the Dairy Industry 4-3

Negative Consumer Perception of Dairy Products 4-4

C h a p t e r 5

Dairy Ingredient Trends

Trends and Developments 5-1

Introduction 5-1

Milk Protein 5-1

Whey Proteins 5-1

Product Analysis 5-2

Whey Protein 5-2

Milk Protein 5-3

Application Analysis 5-4

Whey 5-4

Milk Protein 5-5

C h a p t e r 6

Strategic Recommendations

Strategies to Overcome Industry Challenges 6-1

Recommendations 6-1

Strategies to Overcome Threat from Private Label Growth 6-1

Strategies to Overcome Threat from Consolidation within the Industry 6-2

Strategies to Counter Threat from Substitution and Negative Consumer Perception 6-2

Strategies to Reduce Threat from Regulatory Restrictions 6-3

C h a p t e r 7

Commercial Success Stories

Key Innovations 7-1

Innovations in Dairy Products 7-1

Cheese 7-1

Milk 7-2

Yoghurt & Desserts 7-2

Butter & Spread 7-3