Dairy Derivatives Procurement Intelligence 2030 : Dairy Derivatives Category Is Estimated To Expand Further At A CAGR Of 4.5%

Posted on By Editorial Team

Dairy Derivatives Procurement Intelligence

In this dairy derivative procurement intelligence report, we have estimated the pricing of the key cost components. Raw material forms the largest cost component of dairy derivative category implementation. Raw material such as milk is the primary cost component in the dairy derivatives category, with variations depending on country, season, and milk quality. 

The average price is USD 3.9 per gallon for conventional whole milk in June 2023. Processing costs, including labor, equipment, and energy, contribute to the overall cost of dairy derivatives. Average operations manager salary is between USD 60,000 to USD 90,000. In the US, the cost per mile for refrigerated vehicles reached USD 4.97. The cost is affected by the rise in fuel prices. Rates in Canada have increased by 33% to USD 4.77 per mile from USD 3.59.

Order your copy of the Dairy Derivatives category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Operational Capabilities – Dairy Derivatives Category

  • Geographical Presence – 25%
  • Employee Strength – 25%
  • Years in Service – 20%
  • Key Clients – 15%
  • Revenue Generated – 15%

Functional Capabilities – Dairy Derivatives Category

  • Chromatography – 20%
  • Microfiltration – 20%
  • Nanotechnology – 20%
  • Ultrafiltration – 20%
  • Enzymes – 20%

Rate Benchmarking

The US has a higher milk cost compared to New Zealand because the US has a much larger population than NZ, which means that there is a greater demand for dairy products in the US. This leads to more competition for milk in the US, which drives up the price. Tariffs imposed by the US to protect the dairy industry from foreign competition, increasing the cost of dairy products from New Zealand. Transportation costs of finished dairy products from New Zealand to the US are higher than within the US due to the longer distance between the two countries. This longer distance also adds to the cost. 

The New Zealand government subsidizes its dairy industry, providing financial assistance to dairy farmers, which helps keep the cost of dairy products lower. In contrast, the US government does not subsidize its dairy industry, resulting in no financial assistance for dairy farmers in the US. Due to a few circumstances, China is more expensive than India for dairy derivatives. The difference in production costs is one cause that might exist. Prices may increase because of China’s potential higher expenses for labor, shipping, or raw materials. Pricing in both nations may also be impacted by market forces like competition and regulatory restrictions. It’s crucial to keep in mind that the market for dairy derivatives is complicated and that a variety of factors contribute to the pricing differences between China and India.

Supplier Newsletter

  • In Nov 2022, Freshly and Kettle Cuisine, a top producer of fresh artisanal foods for retail and foodservice consumers, have joined forces under a partnership that Nestlé and L Catterton had announced. The merged business will concentrate on providing customers across various markets and distribution channels with a huge selection of fresh food goods.
  • In July 2022, to launch Pro-OptimaTM, a grade A functional whey protein concentrate (FWPC) to the market, NZMP, a Fonterra’s business, formed a joint venture with Tillamook County Creamery Association (TCAA) and Three Mile Canyon Farms in the US.
  • In May 2022, a brand-new production facility at Pronsfeld Dairy in Germany was formally opened by Arla. The development represents Arla’s largest dairy investment and a major factor in fulfilling the rising demand for wholesome, affordable dairy products on a global scale.

List of Key Suppliers

  • Nestle
  • Danone
  • Amul
  • Fonterra
  • Dean Foods
  • Saputo
  • Mengniu Dairy
  • Yili Group
  • Tyson Foods
  • Arla Foods 

Browse through Grand View Research’s collection of procurement intelligence studies: 

Dairy Derivatives Procurement Intelligence Report Scope 

  • Dairy Derivatives Category Growth Rate : CAGR of 4.5% from 2023 to 2030 
  • Pricing Growth Outlook : 3% – 5%(Annual) 
  • Pricing Models : Volume-based pricing model and cost-plus pricing model 
  • Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence 
  • Supplier Selection Criteria : Sustainability, price, quality, reliability, flexibility, technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others. 
  • Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to): 

  • Market Intelligence involving – market size and forecast, growth factors, and driving trends
  • Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
  • Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
  • Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
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