Industry Analysis & Industry Trends
Grain is one of Australia's most valuable agriculture products. Wholesalers play a major role in the distribution of grain from the farmer to end markets, both domestically and internationally. Over the five years through 2014-15, industry revenue is forecast to grow by an annualised 9.0% to reach $8.3 billion. This figure is positively skewed due to an enormous downward swing in revenue in 2009-10 caused by ongoing drought conditions and low world wheat prices. Consequently, the industry's growth rate over this period has been inflated.
As is often the case for industries that depend on agricultural commodities, revenue volatility is very high. The supply of cereal grains from the Grain Growing industry is the most important factor affecting wholesalers' revenue... purchase to read more
Industry Report - Starting a New Business Chapter
In the past, the industry was dominated by a number of statutory marketing authorities that controlled the processing and marketing of grain. Their activities were defined by law, which posed a formidable barrier to entry.
These barriers have gradually been removed as the industry has been deregulated. In turn, this new, more competitive environment is offering a number of opportunities for new players. Large global grain traders, such as Cargill and Glencore, have already taken advantage of this and have begun operating in the market. Factors that continue to restrict entry include a strong knowledge base, high capital investment and the influence of established operators... purchase to read more