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 Products Chapter
Products in the industry can be broken down based on the volume of basic ingredients contained in the products. Each product contains basic ingredients so that animals are provided with a balanced diet from a single product. Cereal grains are the largest source of ingredients and include wheat, barley, oats, sorghum and other grains. Oil meals make up the second major ingredient group and include soy meal, sunflower meal and other high-protein oil meals. Each segment's size represents its contribution to industry revenue.
The largest product segment in the industry is wheat feed. Wheat used by the industry is usually of a lower quality than wheat used for human consumption and is therefore cheaper... purchase to read more