Against the grain: A decline in grain production volumes has contributed to industry exits

Operators in the Grain Storage industry have faced grain production volatility over the past five years. Due to falling grain production, industry revenue is expected to decline at an annualised 0.8% over the five years through 2018-19, to total $2.7 billion. However, this result does not reflect the volatility that many industry operators have experienced over the period. Shifting wheat prices, movements in the Australian dollar and fluctuating grain production due to changing rainfall levels have influenced industry demand and therefore earnings. Additionally, a record national grain harvest during 2016-17 significantly increased demand for grain more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Fluctuations in grain prices and changing rainfall levels have contributed to industry volatility
  • A fall in grain production over the past five years has weighed on demand for grain storage
  • Grain exporters may shift to using on-farm storage facilities, reducing demand for the industry
  • Industry Report - Industry Key Buyers Chapter

    The Grain Storage industry is characterised by moderate market share concentration. The industry's four major players are expected to account for over 50% of total revenue in 2018-19. Large companies tend to operate with vertically integrated supply chains to control the distribution of grains from growers to handlers and from processors to consumers. As a result, any changes in the structure of grain growing and exporting industries may have flow-on effects in the industry.The remaining market share is distributed among many smaller private operators that occupy niche markets. According to the ABS, only three firms employ more than 200 staff. In addition, over 75% of enterprises generate less than $2 million in revenue. The...purchase to read more.

    Additional Insights for the Grain Storage Industry

    IBISWorld has determined the most important Key Success Factors for the Grain Storage are:

  • Prompt delivery to market
  • Use of most efficient work practices
  • Provision of superior after sales service
  • IBISWorld analysts also discuss how external factors such as Demand from grain growing and Trade-weighted index in the Grain Storage industry impact industry performance..

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    What's in this report

    What is the Grain Storage Industry?

    Industry firms primarily store cereal grains. Following crop harvest, grain handlers receive and sort grain according to its use and protein content. Grain is then dispatched as required, either for domestic consumption or export.

    Industry Products
  • Wheat used for milling
  • Wheat used for feed
  • Barley used for malting
  • Barley used for stockfeed and human consumption
  • Oats, triticale and sorghum
  • Oilseeds
  • Industry Activities
  • Grain storage services
  • Grain silo operation
  • Grain elevator operation
  • 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 grain growing
  • Trade-weighted index
  • Level of annual rainfall
  • World price of wheat

  • Current Performance
  • Revenue and profitability
  • Grain supply chain
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability and structure
  • Grain production and climate change
  • Genetically modified crops
  • Table: Grain Storage Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Grain Storage Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grain Growing
  • Cereal Grain Wholesaling

  • Key Selling Industries
  • Commercial and Industrial Building Construction
  • Rail Freight Transport
  • Road Freight Transport
  • Water Freight Transport

  • Products & Services
  • Wheat used for milling
  • Barley used for stockfeed and human consumption
  • Oilseeds
  • Oats, triticale and sorghum
  • Barley used for malting
  • Wheat used for feed
  • Chart: Grain Storage Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wheat growers
  • Barley growers
  • Oilseed growers
  • Other grain growers
  • Chart: Major Market Segmentation for the Grain Storage 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 Grain Storage

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Grain Storage Industry

  • Industry Globalization
    Co-operative Bulk Handling Limited, GrainCorp Limited, Cargill Australia Limited, Glencore Grain Pty Ltd,
  • Table: Co-operative Bulk Handling Limited - financial performance
  • Table: GrainCorp Limited - financial performance
  • Table: Cargill Australia Limited - financial performance
  • Table: Glencore Grain Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Grain Storage 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 Grain Storage 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
    Coarse Grains
  • Grains such as sorghum, oats and barley.
  • Oilseeds
  • Sunflower, canola, cottonseeds and soybeans used in the production of vegetable oils.
  • Silo
  • Facility for the storage of bulk materials, usually grains.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Grain Storage 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 Grain Storage:
    • 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 Grain Storage 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 Grain Storage, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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