DAKOTA GROWERS PASTA

Group Members: Anum Yaqoob 8926 Misbah Kodi Neha Ali

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Dry Pasta Industry

There were 141 dry pasta manufacturers but 67 accounted majority of pasta sales

Vertically integrated firms including DGP were the main pasta manufacturers with a combined market share of about 55 percent

25 percent of market share was held by companies that manufacture pasta for their own brands including Kraft foods

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Price Volatility
Durum Wheat prices rose because of several reasons: 1. Increased Demand for pasta 2. Lower production yields due to disease problems 3. Increase in milling capacity increased demand for durum wheat Pasta manufacturers found it more difficult to pass on higher input costs and their margins began to decline, driving 4/15/12 down profitability

Competition in the Pasta Industry

Major competitors were: American Italian Pasta Company

Hershey Pasta Group

Borden food holdings Corporation

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Competitive rivalry

Competition in the Pasta Industry

Firms competed in this industry through 5 principal methods: 1. Degree of capacity utilization (lowest AVC) 2. Product distribution capabilities 3. Service capability 4. Ability to provide consistent quality to customer specifications 5. Access to durum wheat
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Competition in the Pasta Industry AIPC and DGP had almost

Capacity Utilization 100%, due to their supply Distribution Capabilities Service Capability
management agreement with their customers Access to favorable rail transportation had helped new entrants (AIPC and DGP) achieve low distribution costs The use of electronic data interchange (EDI) helped AIPC, DGP and HPG to provide marketing services to their customers DGP and AIPC had been able to achieve success through access to high quality durum wheat Access to durum wheat allowed AIPC and DGP to

Access to Durum Wheat

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SWOT Analysis

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