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 Key Buyers Chapter
The Cereal Grain Wholesaling industry has a moderate level of market share concentration. A small number of large grain traders account for the majority of industry revenue. The four largest players control more than half of the market. There have been a number of takeovers in the past decade, which has increased concentration even further. Examples include Cargill's acquisition of the Australian Wheat Board's commodity business (December 2010) and Glencore's acquisition of Viterra (December 2012). These are the result of deregulation, which has encouraged merger and acquisition activity. Numerous smaller participants also operate in niche segments of the market, servicing narrow geographic areas or dealing in a small number of grains... purchase to read more