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 Investment Chapter
The Farm Animal Feed industry displays a moderate capital intensity level. Although significant amounts of capital equipment are required to operate in the industry, most of the equipment has a long useful life. Consequently, firms are able to depreciate the majority of equipment over up to 30 years. For every dollar spent on wages, the average industry player invests an estimated $0.24 on capital items.
Increased automation has put downward pressure on wages. This has resulted in the capital to labour ratio falling over the past five years, raising the capital intensity level. This is because industry participants have sought to reduce operating expenses, such as wages, wherever possible... purchase to read more