Counting sheep: Surging export demand and higher prices drive revenue growth

The Sheep Farming industry has displayed strong growth over the past five years, despite variations in turn-off rates and wool production volumes. Rising demand for wool and downstream sheep meat from export markets has stimulated strong price growth for both wool and sheep meat, which has boosted livestock prices at the farm gate. Conversely, domestic demand has been relatively stagnant as per capita red meat consumption has fallen over the period. As a result, operators have increasingly focused on export markets to expand revenue. Overall, industry revenue is expected to grow at an annualised 10.2% over the five years through 2017-18, to reach $4.4 billion. However, this result is slightly skewed by a low base year in 2012-13, when both wool and lamb prices fell sharply...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
10.2%
Forecast Growth 18-23
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Profit
x.x%lock
Employment
19,541
Businesses
11,181
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Surging wool and lamb demand from overseas has contributed to the industry’s significant expansion
  • Profit margins have fluctuated over the past five years, but have increased overall
  • Farmers will likely focus on export markets to shore up revenue lost from weak domestic consumption

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    Industry Report - Industry Key Buyers Chapter

    As with the majority of agricultural industries, the Sheep Farming industry is highly fragmented. Although numerous large operators exist, no single producer accounts for a significant portion of industry revenue. The Agriculture subdivision has much lower ownership concentration than other sectors of the economy. This is due to the high portion of family-owned and family-run farms.The majority of industry operators are small and medium-sized family businesses. Approximately 60% of industry participants do not employ any workers, relying only on owner-operators and their family to carry out labour functions. Virtually no industry participants require more than 19 workers, with the majority of employing businesses using less than 10 workers. Des...purchase to read more.

    Additional Insights for the Sheep Farming Industry

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

  • Superior financial management and debt management
  • Proximity to key suppliers
  • Proximity to key markets

    • IBISWorld analysts also discuss how external factors such as Domestic price of wool and Domestic price of lamb in the Sheep Farming industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Sheep Farming Industry?

    The industry consists of farms that are primarily engaged in sheep farming. Sheep are farmed for their meat and wool.

    Industry Products
  • Wool
  • Lambs for slaughter
  • Sheep for slaughter
  • Sheep for live export
  • Sheep and lambs for breeding and stocking
    • Industry Activities
  • Prime lamb raising
  • Sheep farming
  • Wool growing
  • Sheep agistment
  • Raw sheep milk production
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Domestic price of wool
  • Domestic price of lamb
  • Level of annual rainfall
  • Trade-weighted index
  • Sheep meat production

    • Current Performance
  • Production and prices
  • Importance of trade
  • Fluctuating profit margins
  • Keeping it in

    the family

  • Chart: Revenue Growth

    • Industry Outlook
  • Covering costs
  • Productivity push
  • Tech-savvy farmers
  • Table: Sheep Farming Industry Revenue Outlook

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

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Meat Processing
  • Wool Wholesaling

    • Key Selling Industries
  • Agribusiness
  • Livestock and Other Agricultural Supplies Wholesaling
  • Organic Farming
  • Shearing, Cropping and Agricultural Support Services
  • Veterinary Services

    • Products & Services
  • Wool
  • Lambs for slaughter
  • Sheep for slaughter
  • Sheep for live export
  • Sheep and lambs for breeding and stocking
  • Chart: Sheep Farming Industry Products and Services Segmentation

    • Demand Determinants
  • Demand for slaughter sheep and lamb
  • Demand for wool

    • Major Markets
  • Wool wholesalers and processors
  • Meat processors
  • Live sheep export markets
  • Other farmers
  • Chart: Major Market Segmentation for the Sheep Farming Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Sheep Farming

    • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sheep Farming Industry

    • Industry Globalization

    Major Companies

    There are no major players in this industry. This report includes analysis of other companies.

    Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Sheep Farming Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Sheep Farming Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    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.
    • Melioidosis
  • A bacterial disease found in the Northern Territory. Bacteria remains under the soil during the dry season, but can become airborne and spread to animals and humans during wet season.
    • Stockfeed
  • Animal feed, such as wheat, grain or grass.
    • Turn-Off Rate
  • The portion of the flock that the farmer sells for processing.
    • What Our Customers Say
    Why buy this report?

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

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