Cloetta Fazer Competition
Now Viewing Cloetta Fazer's competition in: Dairy Products Manufacture
Recent Developments
Consumers Paying More for Dairy Products - US consumers paid 11 percent more for dairy products in March 2008 compared to March 2007. Consumer prices of dairy products were stable from 2004 through early 2007, but began rising rapidly in April 2007. Dairy product manufacturers may be negatively impacted if rising dairy product prices reduce demand in the US.
US Dairy Exports Rose in 2007 - US dairy product exports rose 23 percent in 2007 compared to 2006. Foreign demand is being driven by US wholesale dairy product prices that are below world price levels. While prices in both the US and international markets are lower in 2008 than the record levels of 2007, prices remain well above historical levels.
US Corn Acreage Expected to Decline - US farmers intend to plant 8 percent less corn in 2008 than in 2007. Dairy farmers may pay more for corn-based feed if demand for corn exceeds supply. High nitrogen costs and strong soybean prices are cited as key causes for the expected decline in US corn acreage.
Competitive Landscape
Changes in consumer income drive demand for various types of dairy foods. The profitability of individual companies depends on efficient operations and marketing, as milk is a commodity product. There are few economies of scale in the manufacturing process, which is why small companies can effectively compete with the large ones in local markets.
Dairy Products Manufacture Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US dairy products manufacturing is forecast to grow at an annual compounded rate of 3.3 percent between 2007 and 2012.
Dairy Products Manufacturing Growth Peaks then Steadies
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Limited by demographics
- Large manufacturers have economies of scale
- Risk: Slowing economy pushes consumers to low-margin products
Industries Where Cloetta Fazer Competes
- Food
- Candy & Confections (primary)
- Dairy Products
