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 - Starting a New Business Chapter
Barriers to entry to the industry are considered high. The industry is dominated by large players that have established operations and low production costs. 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 grain, 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. These operators also have well established brands that foster customer loyalty... purchase to read more