Industry Analysis & Industry Trends
The Meat, Poultry and Smallgoods Wholesaling industry is under pressure from structural changes in upstream industries and increasing wholesale bypass by retailers. Moreover, consolidation and rationalisation is a feature of this low- to mid-level profit margin industry, as processors are integrating wholesaling operations into their activities. At the same time, however, larger retailers are bypassing the services of wholesalers, thus reducing demand for this industry's services. In the five years through 2012-13, industry revenue is expected to contract by an annualised 1.6% to reach $10.8 billion. Over 2012-13, revenue is expected to contract at a slower rate of 1.2% from the previous year.
The industry's fortunes are closely tied to domestic consumption of meat products... purchase to read more
Industry Report - Starting a New Business Chapter
Although industry concentration is low, new companies seeking to the enter the industry face significant barriers to entry. For instance, the pre-existence of distribution networks between operators, suppliers and customers is considerable. Moreover, many of these relationships have been built up over time, indicative of a loyal supply and customer base. Many new players looking to edge in on existing companies may encounter difficulties with establishing supply contracts.
Vertically integrated firms that combine processing and wholesaling of their products present a barrier to entry to stand-alone wholesalers. These larger players also benefit from their economies of scale and may be able to offer retailers a wider range of products and more consistency of supply... purchase to read more