Industry Analysis & Industry Trends
The industry has performed modestly over the past five years. Rising spending on pets and growing global demand for meat – which has boosted global livestock production and subsequently, demand for stockfeed – have contributed to the industry's growth over the period. Industry revenue is projected to post annualised growth of 3.3% over the five years through 2015-16, to reach $4.1 billion. This growth is slightly overstated due to a 7.1% revenue decline in the five-year period base year of 2010-11. Revenue growth of 3.1% is anticipated in 2015-16, as an El Nino creates fears of severe drought among livestock farmers, prompting them to stockpile feed and contributing to revenue growth.
The industry has two major product segments: stockfeed and pet food... purchase to read more
Industry Report - Starting a New Business Chapter
Moderate barriers inhibit entry into the Prepared Animal and Bird Feed Manufacturing industry. The majority of products manufactured by the industry have low per unit values, making economies of scale necessary to minimise average production costs. Firms wishing to enter the market will therefore need to establish production of a similar scale to effectively compete against incumbent players.
The level of capital investment needed to establish certain industry operations can act as another barrier for new participants. Generally, animal food manufacturing is capital intensive and requires substantial initial investments in plant and machinery, establishment’s costs, technology and mechanisation etc. Potential entrants also face strong competition from current industry players... purchase to read more