Greener pastures: Revenue growth to return due to demand for environmentally friendly food

The Fertiliser Manufacturing industry plays an essential role in ensuring that the nation’s agricultural production systems are economically efficient in the short term and sustainable in the long term. Roughly five to six million tonnes of fertiliser is sold each year in Australia, about half of which is manufactured locally. The industry supplies a range of phosphorus, nitrogen, potassium and sulphur fertilisers, and an increasing mix of high-analysis blends and trace elements. Nitrogen-based fertiliser products (including ammonium phosphates and urea) are applied to over half of all fertilised agricultural land in Australia, and make up a key industry product more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Demand and supply imbalances, and rising import penetration, lead to industry volatility
  • Rising utility prices have had an adverse effect on profit margins over the past five years
  • Consolidation in the agricultural sector will continue to affect industry performance
  • Industry Report - Industry Locations Chapter

    The main farming states, Queensland, Victoria, Western Australia and New South Wales, are expected to account for the bulk of the industry's operations, with the major manufacturers and smaller blending operations running substantial operations in each of the significant farming states. These states combined are expected to account for 87.5% of enterprise numbers in 2017-18. This pattern has held since the industry first developed in the 1860s. Fertiliser usage by Australian farmers varies between each state and is dependent on the level of nutrients, especially phosphorous and nitrogen, contained within the cropping soils in each state. For example, Western Australia is the largest consumer of nitrogen-based fertilisers (urea and ammonium phosphates). In ...purchase to read more.

    Additional Insights for the Fertiliser Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fertiliser Manufacturing Industry are

  • Availability of resource
  • Having contacts within key markets
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Demand from agriculture and Domestic price of fertiliser in the Fertiliser Manufacturing industry impact industry performance..

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    What's in this report

    What is the Fertiliser Manufacturing Industry?

    Industry firms manufacture or mix fertilisers, including those based on the three major plant nutrients (phosphorous, nitrogen and potassium), and organic fertilisers, including those derived from bonemeal and animal by-products.

    Industry Products
  • Nitrogen-based fertilisers
  • Superphosphate fertilisers
  • Ammonium phosphates
  • Organic fertilisers
  • Potash fertilisers
  • Other manufactured fertilisers
  • Industry Activities
  • Prilled ammonium nitrate
  • Ammonium phosphate and ammonium sulphate
  • Animal or vegetable fertilisers and other organic fertiliser
  • Bone dust, bonemeal and fishmeal fertiliser
  • Phosphate, ground and superphosphate fertiliser
  • Potash fertiliser
  • Potassium chloride fertiliser
  • Sodium nitrate fertiliser
  • Controlled release fertiliser preparation
  • Urea (fertiliser grade)
  • Table of Contents

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

  • Current Performance
  • Volatile revenue growth
  • Dominant international trade patterns
  • Changing operating environment
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry challenges
  • Environmental issues
  • Changing players
  • Table: Fertiliser Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fertiliser Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grain Growing
  • Sheep Farming
  • Beef Cattle Farming
  • Sugar Cane Growing
  • Cotton Growing

  • Key Selling Industries
  • Basic Inorganic Chemical Manufacturing
  • Oil and Gas Extraction

  • Products & Services
  • Nitrogen-based fertilisers
  • Ammonium phosphates
  • Superphosphate fertilisers
  • Organic fertilisers
  • Other manufactured fertilisers
  • Potash fertilisers
  • Chart: Fertiliser Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wheat farmers
  • Livestock farmers
  • Other cereal grain farmers
  • Non-agricultural users
  • Oilseed farmers
  • Export market
  • Industrial crop farmers
  • Other farmers
  • Chart: Major Market Segmentation for the Fertiliser Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Utilities
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Fertiliser Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fertiliser Manufacturing Industry

  • Industry Globalization
    Incitec Pivot Limited, Wesfarmers Limited, Yara Pilbara Holdings Pty Ltd,
  • Table: Incitec Pivot Limited - financial performance
  • Table: Wesfarmers Limited - financial performance
  • Table: Yara Pilbara Holdings Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fertiliser Manufacturing 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 Fertiliser Manufacturing Industry
  • 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
    Nitrogen Fertilisers
  • Fertilisers based on the manufacture of ammonia. They are popular because Australian soils are deficient in nitrogen.
  • Phosphate Fertilisers
  • Fertilisers manufactured by adding acid to phosphate rock. Superphosphates are made by treating phosphate rock with sulphuric acid and water, making the phosphorous soluble for plants to absorb.
  • Potash
  • Fertiliser that is derived from geological saline deposits and is used in soils that are affected by potassium deficiency.
  • Single Superphosphates (Ssp)
  • SSP fertilisers were the first commercial mineral fertiliser and were once the most commonly used fertiliser. They have a relatively lower phosphorus content.
  • Urea
  • A naturally occurring organic compound used to manufacture nitrogen fertiliser. It is made by combing ammonia and carbon dioxide.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fertiliser Manufacturing 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.

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    This report on Fertiliser Manufacturing:
    • 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 Fertiliser Manufacturing 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

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