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 farmers to end markets, both domestically and internationally. Over the five years through 2015-16, industry revenue is forecast to grow by an annualised 6.1% to reach $18.1 billion. Industry revenue is anticipated to rise by 5.5% in 2015-16. This is due to an expected increase in total domestic grain production, combined with a marginal increase in world wheat prices. The projected further depreciation of the Australian dollar should also boost demand, due to the improved relative affordability of Australian grains in export markets.
As is often the case for industries that depend on agricultural commodities, revenue volatility is very high... purchase to read more
Industry Report - Industry Investment Chapter
The industry displays a high level of capital intensity. For every dollar spent on labour, an estimated $0.42 is spent on capital. The industry's capital is largely 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. Furthermore, the development of new technologies has resulted in a greater automation over the past five years, which has increased capital intensity for the industry.
Due to the nature of operations, the industry remains reliant on labour for warehouse processing, cereal grain grading and sales activities... purchase to read more