Industry Analysis & Industry Trends
The Farm Animal Feed Production industry has endured difficult trading conditions over the past five years due to unfavourable price movements and volatile weather conditions. Industry revenue is estimated to have grown at an annualised rate of 0.5% over the past five years. Revenue is expected to increase 1.1% during 2013-14 to reach $2.1 billion. Prices for feed grains products have fluctuated substantially over the past five years in response to global production levels and prices. Greater domestic rainfall and better weather conditions have led to improved pasture conditions and reduced the demand for feed during 2009-10 and 2010-11. Lower rainfall during 2011-12 and 2012-13 increased demand and industry revenue. The major companies in the industry, which earn 90.0%... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a medium level of capital intensity. For every dollar absorbed by capital costs, an estimated $3.92 is spent on wages. The industry's level of depreciation is low and steady. Although significant amounts of capital equipment is required to operate in the industry, most of the equipment has a long useful life. Most equipment is depreciated over up to 30 years.
Increased automation has put downward pressure on wages. This has resulted in the capital to labour ratio falling over the past five years. However, the average wage in the industry is expected to increase over the next five years, increasing the ratio, as operators look to employ higher-skilled workers who can operate production machinery... purchase to read more