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. Prices for feed grains products have fluctuated substantially over the past five years in response to global production levels and prices. This affects the industry, given that feed grains are its major product and it has a high level of international trade exposure. As such, the oversupply of grains and wheat on the global market during 2008-09 and 2009-10 caused world prices to plummet in line with industry revenue. The situation reversed in 2010-11. Wheat and other grain prices soared as global grain production plummeted due to adverse weather conditions across major producing regions... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry to the industry are considered high. Incumbent operators tend to be large players in the market, owning large market shares in the industry. These operators generally have well-established supply chain structures, which smaller new entrants may find difficult to emulate. Supplier contracts may be difficult to obtain, especially as competition for grains, which is a major input material for feed production, intensifies within the industry.
Large operators also tend to have more-advanced production facilities and skills, which help them generate economies of scale. As a result, smaller operators tend to find it difficult to compete in terms of price and quality. Another barrier to entry comes in the form of expensive capital costs... purchase to read more