Industry Analysis & Industry Trends
Operators in the Farm Animal Feed Production industry have endured 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 more than 75% of industry revenue, have been able to use their size to reduce their exposure to these sources of volatility and have remained profitable over the period. Industry revenue is expected to fall at an annualised 3.1% over the five years through 2016-17. This decline is slightly overstated due to an 11.6% revenue spike in 2011-12, which resulted from increased demand following reduced rainfall... 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. Industry valued added, which measures the industry's contribution to the economy, is expected to grow at an annualised 1.2% over the 10 years through 2021-22. This is slower than the Australian economy, with GDP projected to grow at an annualised 2.5% 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... purchase to read more