Against the grain: Highly volatile revenue has put industry wholesalers through the mill

Grain is one of Australia's most valuable agriculture products. Wholesalers play a major role in distributing grain from farmers to end markets, both domestically and internationally. Industry revenue is expected to fall at an annualised 0.6% over the five years through 2018-19, to total $20.3 billion. This trend includes an expected decline of 5.2% in the current year. Revenue is expected to decline in the current year as production volumes fall. Industry profitability has fluctuated over the past five years in response to volatile production volumes, with profit margins declining slightly overall.Industry revenue is highly volatile. The supply of cereal grains from the Grain Growing industry is the most important factor affecting wholesalers' more.

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

Industry Threats & Opportunities

  • The unpredictable nature of annual rainfall contributes to industry revenue volatility
  • Industry revenue is strongly aligned with global grain prices and production
  • The industry is at risk of negative weather conditions, which can severely affect revenue
  • Industry Report - Industry Analysis Chapter

    The Cereal Grain Wholesaling industry plays a key role in distributing grain, which is one of Australia’s largest agricultural products in value terms. The volume of grain produced by upstream agricultural industries drives demand for wholesalers, although some producers supply end customers directly. Cereal grain wholesalers have endured volatile trading conditions and revenue swings over the past five years due to the industry’s reliance on upstream grain production. Fluctuations in climatic conditions, global grain prices and global grain production have all influenced revenue volatility over the period.Industry revenue is expected to fall at an annualised 0.6% over the five years through 2018-19, to total $20.3 billion. The...purchase to read more.

    Additional Insights for the Cereal Grain Wholesaling Industry

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

  • Output is sold under contract - incorporate long-term sales contracts
  • Ready access to investment funding
  • Financial position of the company (as against financial structure)
  • IBISWorld analysts also discuss how external factors such as Demand from grain growing and Trade-weighted index in the Cereal Grain Wholesaling industry impact industry performance..

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    What's in this report

    What is the Cereal Grain Wholesaling Industry?

    The industry consists of companies that wholesale wheat or other cereal grains.

    Industry Products
  • Wheat
  • Coarse grains
  • Oilseeds
  • Legumes and other
  • Industry Activities
  • Wheat wholesaling
  • Coarse grain wholesaling
  • Oilseed wholesaling
  • Rice wholesaling
  • Legume wholesaling
  • 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
  • Domestic production
  • The global market
  • Global consumption
  • Export deregulation
  • Chart: Revenue Growth

  • Industry Outlook
  • Domestic production outlook
  • Global grain outlook
  • Market dynamics
  • Table: Cereal Grain Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Beef Cattle Farming
  • Dairy Cattle Farming
  • Flour and Grain Mill Product Manufacturing
  • Cereal, Pasta and Baking Mix Manufacturing
  • Bread Production

  • Key Selling Industries
  • Cereal Grain Wholesaling
  • Grain Growing

  • Products & Services
  • Wheat
  • Coarse grains
  • Oilseeds
  • Legumes and other
  • Chart: Cereal Grain Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Domestic demand
  • Overseas demand

  • Major Markets
  • Export markets
  • Domestic food manufacturers
  • Livestock and feed-producing industries
  • Chart: Major Market Segmentation for the Cereal Grain Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation
  • Other Costs
  • Chart: Cost Structure Benchmarking – Sector vs Cereal Grain Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

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

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cereal Grain Wholesaling 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 Cereal Grain Wholesaling Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bulk Wheat
  • Wheat containers of more than 50 tonnes.
  • Silo
  • A large storage facility that protects grain from weather and pests.
  • Stockfeed
  • Grains that are used as feed for livestock. Demand is usually inversely correlated with unfavourable weather conditions.
  • Wholesale Bypass
  • Interaction between primary producers and end users such as food manufacturers or retailers, which removes the need for the wholesaler.
  • What Our Customers Say

    Why buy this report?

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

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