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 - Industry Investment Chapter
The Prepared Animal and Bird Feed Manufacturing industry is highly capital-intensive. For every dollar spent on labour, the average producer spends $0.44 on capital expenses. The actual level of capital intensity varies for each producer, according to their size. Small- to medium-sized facilities have a lower capital intensity than large producers. This is because smaller producers lack the resources to invest in expensive technology and equipment and have to employ additional labour to increase production volumes.
The rising need for automation and mechanisation in the production process has contributed to the industry’s high and increasing capital intensity level... purchase to read more