Industry Analysis & Industry Trends
Grain is one of Australia's most valuable agriculture products and the Cereal Grain Wholesaling industry plays a key part in the dispersion of the various grains produced. Wholesalers play a major role in the distribution of grain from the farmer to the retail market, both domestically and internationally. Over the five years through 2013-14, industry revenue is forecast to grow by an annualised 4.3% to reach $8.3 billion. In 2013-14, industry revenue is expected to increase by 1.3% as prices rise because of lower global production due to unfavourable weather conditions across several major producing regions.
As is often the case for industries that are dependent upon agricultural commodities, revenue volatility is very high... purchase to read more
Industry Report - Industry Investment Chapter
The industry tends to have a medium level of capital intensity because the distribution process can be carried out by relatively few employees. The industry's capital-to-wages ratio is 1:3.45, meaning that for every dollar absorbed by capital costs, businesses allocate $3.45 towards wages. The industry relies on labour for warehouse processing, cereal grain grading and related activities. However, the level of capital tied up in plants and equipment is extensive. The development of new technologies has resulted in a greater automation of processes, which has increased capital intensity for the industry. There is also significant investment in the real estate associated with agency networks... purchase to read more