Industry Analysis & Industry Trends
The Prepared Animal and Bird Feed Manufacturing industry has posted a weak performance over the past five years. This is despite growing spending on pets and rising global demand for meat, which has boosted global livestock production and subsequently, demand for stockfeed. Industry revenue is projected to post marginal annualised growth of 0.3% over the five years through 2014-15, to reach $3.8 billion. This poor performance is largely due to a sharp revenue decline in 2010-11, caused by an abundance of natural pasture feed for livestock industries, which severely weakened stockfeed demand. More modest revenue growth of 2.4% is forecast for 2014-15, due to stronger demand for stockfeed and ongoing pet food demand... purchase to read more
Industry Report - Industry Investment Chapter
The Prepared Animal and Bird Feed Manufacturing industry displays a high capital intensity level. For every dollar spent on labour, the average producer spends $0.41 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