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 - Starting a New Business Chapter
The Prepared Animal and Bird Feed Manufacturing industry operates under medium levels of barriers to entry. 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... purchase to read more