Industry Analysis & Industry Trends
The Grain Growing Industry is highly export-oriented, and includes crops such as wheat, barley, sorghum and other grains. The industry has sustained high levels of volatility in the past five years, largely influenced by adverse weather conditions that have constrained local supply. Revenue volatility has been further exacerbated by fluctuations in global grain prices and global crop supply over the past five years. Industry revenue is forecast to expand by an annualised 1.7% in the five years through 2013-14, to reach $12.8 billion. Favourable weather and planting conditions are projected to support production output, as revenue is forecast to rise by 5.1% in 2013-14.
The industry tends to follow a cyclical pattern, whereby sudden declines in production cause prices to spike... purchase to read more
Industry Report - Starting a New Business Chapter
The industry maintains low barriers to entry. Generally, all inputs are readily available, producers can usually shift between broadacre agricultural activities with ease, and there are often a number of farms for sale. Nonetheless, two possible barriers include capital investment requirements, and problems securing finance for such investment.
The establishment of grain growing operations requires considerable investment. New participants need to purchase vast amounts of farmland, grain silos and machinery such as harvesters and tractors. For existing primary producers, establishment costs are significantly lower. Farmers can simply alter their product mix in response to changing market conditions... purchase to read more