Dairy Product (except Dried or Canned) Merchant Wholesalers
Description
This industry comprises establishments primarily engaged in the merchant wholesale distribution of dairy products (except dried or canned). Illustrative Examples: Butter merchant wholesalers Fluid milk (except canned) merchant wholesalers Cheese merchant wholesalers Ice cream and ices merchant wholesalers Cream merchant wholesalers Yogurt merchant wholesalers
Hierarchy
| Code | Title | Description |
|---|---|---|
| 42 | Wholesale Trade 2-digit sector | The Sector as a Whole The Wholesale Trade sector comprises establishments engaged in wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The merchandise described in this sector includes the outputs of agriculture, mining, manufacturing, and certain information industries, such as publishing. The wholesaling process is an intermediate step in the distribution of merchandise. Wholesalers are organized to sell or arrange the purchase or sale of (a) goods for resale (i.e., goods sold to other wholesalers or retailers), (b) capital or durable nonconsumer goods, and (c) raw and intermediate materials and supplies used in production. Wholesalers sell merchandise to other businesses and normally operate from a warehouse or office. These warehouses and offices are characterized by having little or no display of merchandise. In addition, neither the design nor the location of the premises is intended to solicit walk-in traffic. Wholesalers do not normally use advertising directed to the general public. Customers are generally reached initially via telephone, in-person marketing, or by specialized advertising that may include Internet and other electronic means. Follow-up orders are either vendor-initiated or client-initiated, generally based on previous sales, and typically exhibit strong ties between sellers and buyers. In fact, transactions are often conducted between wholesalers and clients that have long-standing business relationships. This sector comprises two main types of wholesalers: merchant wholesalers that sell goods on their own account and agents and brokers that arrange sales and purchases for others generally for a commission or fee. (1) Establishments that sell goods on their own account are known as wholesale merchants, distributors, jobbers, drop shippers, and import/export merchants. Also included as wholesale merchants are sales offices and sales branches (but not retail stores) maintained by manufacturing, refining, or mining enterprises apart from their plants or mines for the purpose of marketing their products, and group purchasing organizations primarily purchasing and selling goods on their own account. Merchant wholesale establishments typically maintain their own warehouse, where they receive and handle goods for their customers. Goods are generally sold without transformation, but may include integral functions, such as sorting, packaging, labeling, and other marketing services. (2) Establishments arranging for the purchase or sale of goods owned by others or purchasing goods, generally on a commission basis are known as business-to-business electronic markets, agents and brokers, commission merchants, import/export agents and brokers, auction companies, group purchasing organizations (acting as agents), and manufacturers' representatives. These establishments operate from offices and generally do not own or handle the goods they sell. Some wholesale establishments may be connected with a single manufacturer and promote and sell the particular manufacturer's products to a wide range of other wholesalers or retailers. Other wholesalers may be connected to a retail chain, or limited number of retail chains, and only provide a variety of products needed by that particular retail operation(s). These wholesalers may obtain the products from a wide range of manufacturers. Still other wholesalers may not take title to the goods, but act as agents and brokers for a commission. Although, in general, wholesaling normally denotes sales in large volumes, durable nonconsumer goods may be sold in single units. Sales of capital or durable nonconsumer goods used in the production of goods and services, such as farm machinery, medium- and heavy-duty trucks, and industrial machinery, are always included in wholesale trade. |
| 424 | Merchant Wholesalers, Nondurable Goods 3-digit subsector | Industries in the Merchant Wholesalers, Nondurable Goods subsector sell nondurable goods to other businesses. Nondurable goods are items generally with a normal life expectancy of less than three years. Nondurable goods merchant wholesale trade establishments are engaged in wholesaling products, such as paper and paper products, chemicals and chemical products, drugs, textiles and textile products, apparel, footwear, groceries, farm products, petroleum and petroleum products, alcoholic beverages, books, magazines, newspapers, flowers and nursery stock, and tobacco products. The detailed industries within the subsector are organized in the classification structure based on the products sold. Agents and brokers primarily engaged in wholesaling nondurable goods, generally on a commission or fee basis, are classified in Subsector 425, Wholesale Trade Agents and Brokers. |
| 4244 | Grocery and Related Product Merchant Wholesalers 4-digit industry group | This industry group comprises establishments primarily engaged in the merchant wholesale distribution of (1) a general line of groceries; (2) packaged frozen food; (3) dairy products; (4) poultry and poultry products; (5) confectioneries; (6) fish and seafood; (7) meats and meat products; (8) fresh fruits and vegetables; and (9) other grocery and related products. |
| 42443 | Dairy Product (except Dried or Canned) Merchant Wholesalers 5-digit NAICS industry | See industry description for 424430. |
| 424430 | Dairy Product (except Dried or Canned) Merchant Wholesalers 6-digit U.S. detail | This industry comprises establishments primarily engaged in the merchant wholesale distribution of dairy products (except dried or canned). Illustrative Examples: Butter merchant wholesalers Fluid milk (except canned) merchant wholesalers Cheese merchant wholesalers Ice cream and ices merchant wholesalers Cream merchant wholesalers Yogurt merchant wholesalers |
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Classification References
- 01Merchant wholesale distribution of dried or canned dairy products and dairy substitutes--are classified in Industry 424490, Other Grocery and Related Products Merchant Wholesalers; and
- 02Pasteurizing and bottling milk--are classified in U.S. Industry 311511, Fluid Milk Manufacturing.
Index Items
Butter merchant wholesalers
Buttermilk merchant wholesalers
Cheese merchant wholesalers
Cream merchant wholesalers
Cream stations merchant wholesalers
Creamery products (except canned) merchant wholesalers
Dairy depots merchant wholesalers
Dairy products (except canned, dried) merchant wholesalers
Dairy products, frozen, merchant wholesalers
Desserts, dairy, merchant wholesalers
Frozen yogurt merchant wholesalers
Ice cream and ices merchant wholesalers
Ice cream merchant wholesalers
Ice milk merchant wholesalers
Milk, fluid (except canned), merchant wholesalers
Prepared foods, frozen dairy, merchant wholesalers
Raw milk merchant wholesalers
Yogurt merchant wholesalers
How Item Can Help
Item.com's Warehouse Management System optimizes storage for perishable dairy items by tracking expiration dates and enabling FIFO picking to minimize spoilage. It provides real-time inventory visibility across distribution centers to ensure fresh products are stocked close to retail demand.
The Order Management System streamlines processing of high-volume, time-sensitive orders from grocery chains that require immediate delivery of refrigerated dairy goods. It automatically routes orders to the nearest fulfillment center with sufficient stock to reduce delivery windows.
Advanced analytics predict seasonal dairy demand fluctuations, such as increased milk or yogurt sales during holidays, allowing retailers to align production and staffing levels. These insights help wholesalers identify slow-moving SKUs and adjust inventory levels to maximize cash flow.
External Resources
Census.gov NAICS Detail
Official US Census Bureau definition and scope for NAICS 424430.
National Dairy Council
Industry association representing dairy farms and processors with data on milk production and consumption.
U.S. Census Bureau NAICS Code Definitions
Official government resource defining the specifics of NAICS 424430 for statistical reporting.
National Association of Milk Distributors
Organization dedicated to the wholesale distribution of fresh milk and related dairy products.
