Industry Analysis & Industry Trends
The Grain Storage industry has performed strongly over the past five years due to plentiful crop yields and two years of record rainfall. Massive harvests in 2010-11 and 2011-12 assisted industry performance, as demand for grain storage facilities increased significantly in these two years. Weather conditions have also fluctuated dramatically over the past five years. Initially, drought conditions changed to years of record rainfall, which resulted in both bumper harvests and damaged and destroyed grain crops in different areas. Weather conditions have since improved, resulting in more stable crop yields and steadier revenue growth.
Industry revenue is projected to rise at a compound annual rate of 5.9% over the five years through 2014-15... purchase to read more
Industry Report - Starting a New Business Chapter
High barriers to entry characterise the industry and this trend has remained steady over the past five years. The greatest barrier to overcome for any potential entrant is the ability to attract growers away from bulk handling companies. The relationships that exist between growers and grain storage providers tend to be extremely well established and long standing. GrainCorp is one major player indicative of this trend. Even if entrants can demonstrate that they have substantial backing from growers to provide alternative storage services, new firms may be unable to overcome the high initial capital costs associated with building these facilities... purchase to read more