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 7.5% to reach $8.4 billion. However, this growth rate has been positively skewed due to a substantial decline 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 - Industry Investment Chapter
The industry displays a moderate capital intensity level. For every dollar spent on labour, an estimated $0.29 is spent on capital. The industry's capital is extensively tied up in plant and equipment. Many operators, particularly the largest industry players, store cereal grains in massive silos. Construction and maintenance of theses silos requires significant capital expenditure. The development of new technologies has resulted in a greater automation of processes over the past five years, which has increased capital intensity for the industry.
Due to the people-oriented nature of operations, the industry is highly reliant on labour for warehouse processing, cereal grain grading and sales activities... purchase to read more