Industry Analysis & Industry Trends
Participants in the Grain Storage industry provide external sites of storage to grain farmers. The industry typically serves as a link in the chain between farmers and export. Wholesalers and grain marketers use the industry's services and are active within the industry through logistics and warehousing divisions. The industry's value proposition to customers is stable over time, but demand for industry services is extremely volatile. In the five years through 2012-13, industry revenue is expected to grow at a compound annual rate of 13.2% to reach $2.2 billion. In 2012-13, revenue is forecast to decline by 6.3% with crop volumes expected to be lower than the record volumes of 2011-12... purchase to read more
Industry Report - Starting a New Business Chapter
The greatest barrier to overcome for any potential entrant is the ability to attract growers away from Bulk Handling Corporations (BHC). The relationship between each BHC and growers is formidable as it has been long standing and personal. If an entrant can demonstrate that it has substantial backing from growers to provide an alternative service, then the other factor to overcome would be the high capital costs associated with infrastructure provision. This involves investment in silos or equivalent storage facilities and grain handling equipment such as elevators and conveyor belts.
In addition, the entrant has to provide services equal to or superior to existing service levels... purchase to read more