Bailout: Drought conditions have significantly increased demand for hay from local farmers

The Hay and Other Crop Growing industry has reported strong growth over the past five years. Varying rainfall has presented some challenges to industry operators but overall, weather conditions have positively affected the industry. Severe drought in New South Wales and parts of Queensland and South Australia created a surge in demand for hay as pasture conditions in these regions deteriorated. Many producers could not keep pace with rapidly increasing demand, resulting in hay shortages in 2017-18 that pushed up prices. Hay prices in many regions reached 50-year highs over the three years through 2017-18. Growing international demand for Australian beef and dairy products has also benefited the industry. The growth of downstream industries lifted industry demand over the period...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
8.9%
Forecast Growth 19-24
Profit
Employment
4,346
Businesses
2,149
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Varying rainfall has affected demand for hay and fodder crops from livestock farms
  • Australian hops producers are reliant on demand from Australian breweries
  • Increased industry efficiency is forecast to continue benefiting industry profitability
  • Industry Report - Industry Investment Chapter

    The Hay and Other Crop Growing industry's low wage costs are reflective of a highly capital-intensive industry. For every dollar spent on capital, an estimated $1.38 is spent on wages. However, approximately three-quarters of businesses are non-employing, relying solely on owner-operators and family members to carry out labour activities. Owner-operators typically do not pay themselves a traditional wage, but draw their wages out of profit. Consequently, the industry's wage expenses underrepresent the actual income earned per worker in the industry. However, even when imputed wages are considered, the industry still exhibits high capital intensity...purchase to read more.

    Additional Insights for the Hay and Other Crop Growing Industry

    IBISWorld has determined the most important Key Success Factors for the Hay and Other Crop Growing are:

  • Establishment of export markets
  • Economies of scale
  • Production of premium goods/services
  • IBISWorld analysts also discuss how external factors such as Domestic price of wheat feed and Demand from beef cattle feedlots in the Hay and Other Crop Growing industry impact industry performance..

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    What's in this report

    What is the Hay and Other Crop Growing Industry?

    Operators in the industry grow fodder crops such as hay, silage and alfalfa, as well as other niche crops such as peanuts, ginger, coffee, chicory and lavender.

    Industry Products
  • Lucerne hay
  • Pasture hay
  • Cereal hay
  • Other hay crops
  • Other non-hay crops
  • Industry Activities
  • Hay, fodder and silage growing
  • Broom millet growing
  • Chicory and coffee growing
  • Medicinal plant growing
  • Vegetable growing (for fodder)
  • Hops, jute and lavender growing
  • Bamboo growing
  • Mustard, ginger, ramie, lucerne and flax growing
  • Tea growing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic price of wheat feed
  • Demand from beef cattle feedlots
  • Level of annual rainfall
  • Demand from dairy cattle farming
  • Trade-weighted index

  • Current Performance
  • Weather dependent
  • Drought
  • Downstream demand
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Hay demand
  • Murray-Darling Basin
  • Industry structure
  • Table: Hay and Other Crop Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hay and Other Crop Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Beef Cattle Farming
  • Dairy Cattle Farming
  • Pig Farming
  • Livestock and Other Agricultural Supplies Wholesaling
  • Beef Cattle Feedlots

  • Key Selling Industries
  • Industrial and Agricultural Chemical Product Wholesaling
  • Livestock and Other Agricultural Supplies Wholesaling

  • Products & Services
  • Cereal hay
  • Pasture hay
  • Lucerne hay
  • Other non-hay crops
  • Other hay crops
  • Chart: Hay and Other Crop Growing Industry Products and Services Segmentation

  • Demand Determinants
  • Hay
  • Other crops

  • Major Markets
  • Dairy farms
  • Beef cattle feedlots
  • Produce wholesalers
  • Other markets
  • Export markets
  • Chart: Major Market Segmentation for the Hay and Other Crop Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Hay and Other Crop Growing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hay and Other Crop Growing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Hay and Other Crop Growing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hay and Other Crop Growing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Finishing
  • The process of feeding and fattening up livestock before slaughter.
  • Fodder
  • Coarse food (especially for livestock) composed of entire plants or the leaves and stalks of a cereal crop.
  • Hops
  • Plants that have cordate leaves and flowers arranged in cone-like spikes. The dried flowers of this plant are used in brewing to give beers its characteristic bitter taste.
  • Imputed Wage
  • The estimated labour input of the farm owner, their partner and/or family members, based on hours worked and wages outlined in the Federal Pastoral Industry Award.
  • Lucerne
  • Leguminous forage plant with trifoliate leaves and blue-violet flowers grown widely as a pasture and hay crop.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hay and Other Crop Growing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hay and Other Crop Growing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hay and Other Crop Growing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hay and Other Crop Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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