Industry Analysis & Industry Trends
The performance of the Prepared Animal and Bird Feed Manufacturing industry is closely related to agricultural and social trends. Variations in weather patterns, herd stocks and outbreaks of disease often dictate the wellbeing of stockfeed operations in the industry, as do pet ownership levels for pet food manufacturers. These factors have contributed to subdued industry growth over the five years through 2013-14. The industry's performance has also been affected by highly volatile commodity prices and waning profit margins. Growth in global meat consumption and, consequently, herd stocks has primarily sustained modest revenue growth, as the industry has battled with dramatic fluctuations in demand and supply conditions... purchase to read more
Industry Report - Industry Investment Chapter
The Prepared Animal and Bird Feed Manufacturing industry operates at a high level of capital intensity, as measured by the labour to capital ratio. IBISWorld estimates that for every dollar invested in capital, $2.60 is spent on labour. The high level of capital intensity has resulted from the greater need for automation and mechanisation in the production process, which has increased capital requirements.
This trend is reflected in all of the industry's major players, which have undertaken a significant amount of capital expenditure in the past five years. The level of capital intensity varies considerably with the size of the manufacturer... purchase to read more