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 - Industry Key Buyers Chapter
The Cereal Grain Wholesaling industry has a high level of market share concentration. The industry comprises a small number of large grain traders that account for the majority of industry revenue. The four largest players control over 85.0% of the market. There have been a number of takeovers over the past decade, which has increased concentration even further. This is the result of deregulation, which has encouraged merger and acquisition activities.
There are also a number of smaller participants that operate in niche segments of the market. However, the big players have increased competitive pressures on smaller wholesalers. This has contributed to falling enterprise numbers over the past five years, further increasing industry concentration... purchase to read more