Cash cow: Rising export demand and higher prices have driven industry revenue growth

The Sheep-Beef Cattle Farming industry is exposed to a range of factors, including weather patterns, downstream demand and price movements. Consequently, the industry displays high revenue volatility. However, revenue has grown significantly over the past five years as industry livestock and downstream meat product prices have surged. As a result, industry revenue is expected to increase at an annualised 12.5% over the five years through 2018-19, to $6.2 billion. This includes an anticipated decline of 2.3% in 2018-19, due to an expected fall in beef prices.Varying rainfall has played a major role in the industry's performance over the past five years, as rainfall patterns have a significant effect on the operational decisions made by farmers...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 14-19
12.5%
Forecast Growth 19-24
Profit
Employment
23,386
Businesses
12,888
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Strong export demand and rising domestic prices have boosted industry revenue growth
  • Demand conditions in export markets have a significant effect on domestic beef, lamb and wool prices
  • Domestic lamb price growth is forecast to slow as demand growth in export markets eases
  • Industry Report - Industry Analysis Chapter

    The Sheep-Beef Cattle Farming industry has recorded substantial revenue growth over the past five years. Rising prices for cattle, sheep, beef, sheepmeat and wool over the period have boosted returns at the farm gate. Strong demand from overseas, both for live exports and downstream meat and wool products, has supported strong price growth over the past five years. A depreciation of the Australian dollar over the period has also made exported cattle and sheep products more competitive in global markets, boosting prices and returns to sheep and beef cattle farmers. However, high turn-off rates in response to strong price growth have reduced both the national cattle herd and sheep flock numbers. Thi...purchase to read more.

    Additional Insights for the Sheep-Beef Cattle Farming Industry

    IBISWorld has determined the most important Key Success Factors for the Sheep-Beef Cattle Farming are:

  • Superior financial management and debt management
  • Output is sold under contract - incorporate long-term sales contracts
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Level of annual rainfall and Trade-weighted index in the Sheep-Beef Cattle Farming industry impact industry performance..

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    What's in this report

    What is the Sheep-Beef Cattle Farming Industry?

    Industry operators are primarily engaged in farming both sheep and beef cattle. The industry excludes those operations primarily involved in only beef cattle farming, only sheep farming, and those growing grain products in conjunction with sheep or beef cattle farming.

    Industry Products
  • Beef cattle
  • Sheep and lambs
  • Wool
  • Industry Activities
  • Raising beef cattle for meat production
  • Raising sheep for meat production
  • Raising sheep for wool production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Level of annual rainfall
  • Trade-weighted index
  • Domestic price of beef
  • Domestic price of lamb
  • Domestic price of wool
  • Domestic price of fertiliser

  • Current Performance
  • Climate control
  • Sale prices
  • Profit and structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Prices and markets
  • The weather effect
  • Fewer farms
  • Table: Sheep-Beef Cattle Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Sheep-Beef Cattle Farming Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Sheep Farming
  • Beef Cattle Farming
  • Meat Processing
  • Wool Wholesaling
  • Livestock and Other Agricultural Supplies Wholesaling
  • Agribusiness

  • Key Selling Industries
  • Agricultural Machinery Manufacturing
  • Beef Cattle Farming
  • Shearing, Cropping and Agricultural Support Services
  • Sheep Farming
  • Veterinary Services

  • Products & Services
  • Beef cattle
  • Sheep and lambs
  • Wool
  • Chart: Sheep-Beef Cattle Farming Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Meat processors
  • Feedlots
  • Wool wholesalers and processors
  • Export markets
  • Other farmers for breeding or stocking
  • Chart: Major Market Segmentation for the Sheep-Beef Cattle Farming 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 Sheep-Beef Cattle Farming

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sheep-Beef Cattle Farming 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 Sheep-Beef Cattle Farming 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 Sheep-Beef Cattle Farming Industry
    Includes:
  • 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
    Backgrounding
  • An intermediate stage during which cattle are grown to a certain weight before entering a feedlot.
  • Feedlot
  • During the cattle production process, cattle are sent to properties for finishing before slaughter.
  • 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.
  • Turn-Off
  • The rate at which cattle and sheep are sent to slaughterhouses. A high turn-off rate indicates a higher volume of production, while a low turn-off rate indicates a lower volume of production.
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    Why buy this report?

    IBISWorld’s Sheep-Beef Cattle Farming 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 Sheep-Beef Cattle Farming:
    • 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 Sheep-Beef Cattle Farming 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 Sheep-Beef Cattle Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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