Industry Analysis & Industry Trends
Grain growing in Australia is a highly volatile industry. Revenue and production are contingent on the state of the global grain market and changes in climatic conditions. Revenue has fluctuated substantially over the past five years, due to dramatic swings in global grain prices and production levels. For Australian grain growers, these trends have significantly increased revenue volatility. Over 2013-14, prices are expected to rise domestically, but decline globally, due to increased yields in the United States and Russia. As a result, industry revenue is expected to decline by 3.4% over 2013-14. Revenue is forecast to increase at an annualised 2.2% in the five years through 2013-14, to total $13.1 billion... purchase to read more
Industry Report - Starting a New Business Chapter
Overall, there are few barriers to entry into the industry. 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 (in most cases over 800 ha), 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