Industry Analysis & Industry Trends
On the surface, the Grain Storage industry appears to have performed poorly over the past five years. Industry revenue is forecast to grow at a marginal 0.1% annualised over the five years through 2015-16, to total $2.4 billion. However, this is not reflective of the volatility that has occurred in the industry over the past five years. Fluctuating grain production, due to changing rainfall levels, shifting wheat prices and movements in the Australian dollar have influenced industry demand and therefore earnings. Record rainfall levels and resulting increased grain harvests in 2010-11 contributed to 22.7% revenue growth for that year. This created a high base year and skewed the industry's revenue growth figure for the five-year period... purchase to read more
Industry Report - Industry Key Buyers Chapter
A medium market share concentration characterises the industry. In 2015-16, the industry's four major players are estimated to account for just under 50.0% of total revenue. Large companies tend to operate with vertically integrated supply chains, in an effort to control the distribution of grains from growers to handlers and from processors to consumers. As a result, any changes in the structure of grain growing and exporting industries may have flow-on effects in the industry.
The remaining market share is distributed among many smaller private operators that occupy niche markets. According to ABS Counts of Business data, in 2013-14 only three firms employed more than 200 staff. In addition, nearly 80.0% of enterprises generated less than $2.0 million in revenue... purchase to read more