Against the grain: While water supply affects output, premium rice demand boosts revenue

Rice is a water-intensive crop, thus the amount of water that operators in the Rice Growing industry have access to influences production. Consequently, the level of annual rainfall and water availability are two key determinants of industry performance. Despite annual rainfall increasing over the past five years, the availability of water has declined. Government efforts to reduce water extraction levels in the Murray-Darling Basin, which is a key source of irrigation water, has reduced the amount of water available for rice growers. However, rice production was steady over the past five years, as increased rainfall and improved water use efficiency by farmers offset the fall in availability of more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Steady production and rising demand for premium rice varieties has boosted industry revenue growth
  • Declining water availability has constrained rice production over the past five years
  • Water availability is projected to fall further over the next five years, hurting rice production
  • Industry Report - Starting a New Business Chapter

    While competition is low among individual farms and prices are guaranteed, the Rice Growing industry exhibits high barriers to entry. Due to Australia's climate, there are only a handful of locations where rice production is suitable. These locations are primarily in the Riverina region, which has appropriate climatic and physical growing conditions.The establishment of rice growing operations requires considerable investment and water allocations. To gain permission to grow rice, growers need to gain approval from an irrigation infrastructure operator. In addition, farmland must undergo soil tests to determine its suitability. The soil must be clay-based and at least three meters deep to prevent water seepage. New...purchase to read more.

    Additional Insights for the Rice Growing Industry

    IBISWorld has determined the most important Key Success Factors for the Rice Growing are:

  • Appropriate climatic conditions
  • Appropriate physical growing conditions
  • Availability of irrigation water
  • IBISWorld analysts also discuss how external factors such as Rice production and Availability of water in the Rice Growing industry impact industry performance..

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    What's in this report

    What is the Rice Growing Industry?

    Operators in the industry grow rice, which is then sold to millers for processing. The product is generally then onsold to retailers, wholesalers, food processors and food-service establishments to reach the final consumer.

    Industry Products
  • Short-grain rice
  • Medium-grain rice
  • Long-grain rice
  • Industry Activities
  • Rice growing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Rice production
  • Availability of water
  • Level of annual rainfall
  • Demand from cereal grain wholesaling

  • Current Performance
  • Revenue, production and profitability
  • Ricegrowers Limited
  • Irrigation water
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue, production and profitability
  • Irrigation water
  • Genetic modification
  • Table: Rice Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Rice Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Flour and Grain Mill Product Manufacturing
  • Grain Storage

  • Key Selling Industries
  • Agricultural Machinery Manufacturing
  • Heavy Industry and Other Non-Building Construction
  • Shearing, Cropping and Agricultural Support Services
  • Water Supply

  • Products & Services
  • Long-grain rice
  • Medium-grain rice
  • Short-grain rice
  • Chart: Rice Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers and retailers
  • Animal feed wholesalers and retailers
  • Other markets
  • Chart: Major Market Segmentation for the Rice 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 Rice Growing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Rice 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 Rice 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 Rice Growing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Precision Farming
  • A farming technique that uses advanced crop management and satellite technology to assist in decision making for irrigation and planting strategies.
  • Sustainable Diversion Limits (Sdls)
  • The maximum amount of water that can be extracted from the Murray-Darling Basin. SDLs are set to come into force in 2019.
  • Yield
  • A measurement of the amount of crop harvested. Yields are often affected by factors such as rainfall and temperature.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Rice Growing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Rice 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 Rice 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 Rice Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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