Cheese Market and Supply Chain Evaluation in Australian Dairy Industry

This report provides an evaluation of the cheese market and supply chain within the Australian dairy industry, which ranks fourth globally in demand. It highlights the increasing consumption behavior and the mature, stable forecast of the dairy market, driven by customer demands for innovation, particularly in infant nutrition. The supply chain involves dairy firms, processing plants, wholesalers, and retailers, each with specific responsibilities and consumer values. A SWOT analysis identifies strengths like established flows and high-quality ingredients, weaknesses such as lower production and high competition, opportunities including market growth and health awareness, and threats like competitors and raw material costs. The report recommends strategies such as creating awareness, engaging retailers, promoting on social media, utilizing digitalization for traceability, and reducing waste to improve the efficiency and transparency of the cheese supply chain, ultimately enhancing customer accessibility and satisfaction. Desklib provides access to similar solved assignments for students.

Cheese market in diary
industry Australia
Supply chain evaluation

Cheese market and potential
 Australian diary market ranks fourth in the world ranking in terms of
demand.
 New and emerging market in Australia as well as the world
 Most demanded product in the dairy industry
(Australiandairyfarmers.com.au 2018).
 Consuming behaviour is increasing starting from the infants to the
adults
 Dairy market is quite mature and have a stable forecast
 Customers are the main drivers demanding constant innovation
especially for the effectives on the infant nutrition.
 Low entry barrier has increased the competition.

Supply chain flow: product flow
 Dairy firms- Raw milk
Cheese
(ingredients:
milk,
calcium chloride
, Mesophilic
culture, water
and salt)
Processing
plants
• Export
• Directly
to the
domestic
customer
s
Secondar
y process
Packagin
g
Wholesaler
s

Evaluation of the Supply chain
Difficulties:
Attracting and retaining
staff
Maintaining good quality of
the ingredients
Consumer values
Taking care of the quality and safety of the
ingredients
Maintaining the freshness for the good end products
Ecological and ethical production
Responsibilities:
Suppliers are mainly the dairy firm owners and packing
companies
Their task is to produce all the ingredients
These are fragmented hence primarily small businesses.

Bega cheese company
 Customer values
 Maintaining good quality and
taste of the good products
 Understanding the demand
of the market
 Handling the emotional
aspect of the company
Responsibilities
:
• Turning raw
milk into
cheese
through
• Pasteurizatio
n
• Renneting
• Cutting and
scaling
• Pitching and
draining
• Salting
Difficulties:
• Milk waste
during
production
(Chen et al.
2018).
• Using chemicals
as
preservatives.

Wholesalers
Consumer values
 Increased choice for the end
customers
 Convenience and accessibility
for the customers
Responsibilities:
• Distribution and maintaining
coordination of cheese within the
country
• Intermediation between the
company and the consumers with
perfect market insights
• Applying trend for traceability
Difficulties:
• Limited
backwards flows
of information or
data.
• Ineffective
logistics due to
lower volume
and
geographical
characteristics
(Begacheese.co
m.au 2018).

Retailers
Grocery shops, convenient
stores and specialised shops
Responsibilities
• Linking between the producers
and the consumers
• Distribution as well as
accessibility of cheese to the
customers for their home
consumptions
• Presentation of the products
Consumer values
• Facilitating
accessibilities,
convenience and
save time for the
customers.
• Provide good
shopping experience
and motivation for
consumption (Fox et
al. 2017).
Difficulties:
No scope for
delivery of
big data
insights to
the cheese
companies

Customers
 Consumers are he chief driver of Cheese production.
 Long and prosperous tradition of consumption of various types of
cheese.
 Changing demands towards innovation and healthier products.
 Special need for the vegetarian customers and patients
 Low perception of cheese among the vegan consumers and patients
low lactose intolerance (Glover et al. 2014).

Evaluation of the Supply chain:
SWOT
Strengths:
• Diary industry is the third largest industry after meet and
beer industry in Australia.
• It is established flows between suppliers like the farm
owners and packaging industries with the cheese producing
company.
• Long tradition and expertise in the production process
(Auldist et al. 2016).
• High quality ingredients and maintain freshness of the end
product.
• Clear understanding of the product flow in the supply chain.

Evaluation of the Supply chain:
SWOT contd.
 Weaknesses:
 Lower production of milk and
other ingredients
 Lower labour efficiency
 High investment in the
technology
 Low profit margin
 High level competition in the
Australian market
 Environmental wastes (Palmieri,
Forleo and Salimei 2017).

Evaluation of the Supply chain:
SWOT contd.
 Threat:
 Competitors present with lower
price offerings
 Increased cost of the raw
materials
 Limited barrier in entering
market
 Volatility in the commodity
prices
 Higher dependency of
concentrates
 Changes in the government
policies.
 Weather dependency.
Opportunities
• Growth in the Australian
market or economy
• Improved lifestyle of the
consumers
• Increasing awareness about
the health benefit of Cheese
• Alternative of protein diet
• Innovative marketing
• Diverse types of cheese
offered.

Supply chain strategies or
recommendation
 Creation of awareness about the effectiveness of consuming cheese
 Employing grocers or shopkeepers as market insiders and promoters
 Cheese sampling as well as events
 Ppromotion in social media
 Healthier substitution of animal protein
 Increasing market presence
 Applying point of sales promotion
 Online promotion through providing recipes