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 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 decline at an annualised rate of 0.4% over the 10 years through 2018-19. This is in contrast to the Australian economy, which is expected to grow at an annualised rate of 2.6% over the same period. This decline is due to declining profitability due to intense competition.
There is strong demand for industry products but fierce internal and external competition and volatile input prices. To compete in this industry operators need to take advantage of economies of scale, something that is difficult for new entrants. Brand loyalty is also a factor in this industry as a strong brand improves perceptions of quality and safety... purchase to read more