Industry Analysis & Industry Trends
The Farm Animal Production industry has performed well despite difficult trading conditions over the past five years. Volatile weather patterns and resulting shifts in demand for animal feed, fluctuating grain prices and strong competition in the industry have contributed to revenue movements over the period. The major companies in the industry, which earn 90.9% of industry revenue, have been able to use their size to reduce their exposure to these sources of volatility and have remained profitable. Industry revenue is projected to grow at an annualised 3.6% over the five years through 2015-16. This growth is slightly overstated due to a 10.8% revenue decline in 2010-11, which resulted from reduced demand following a deluge of rainfall. Revenue is forecast to rise 3.4%... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Farm Animal Feed Production industry is in the mature phase of its life cycle. The industry's contribution to the economy is expected to grow at an annualised rate of 2.4% over the 10 years through 2020-21. This is slightly slower than the Australian economy, with GDP projected to grow at an annualised 2.8% over the same period. This continued growth at a slower pace than the overall economy is typically of mature industries.
There is strong demand for industry products but fierce internal and external competition and volatile input prices. To compete in the industry operators need to take advantage of economies of scale, something that is difficult for new entrants. Brand loyalty is also a factor in the industry, as a strong brand improves perceptions of quality and safety... purchase to read more