Industry Analysis & Industry Trends
The Prepared Animal and Bird Feed Manufacturing industry has grown 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. Industry revenue is projected to grow at an annualised 1.4% over the five years through 2015-16, to reach $4.0 billion. This growth is slightly overstated due to a 6.4% revenue decline in the base year of 2010-11. Revenue growth of 2.8% is anticipated in 2015-16, with persisting El Nino conditions for the majority of the year increasing stockfeed demand 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 an estimated $0.39 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