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 increase at an annualised 2.5% over the five years through 2017-18, to reach $20.8 billion. This includes an anticipated decline of 14.2% in the current year, due to a record grain crop in the previous year that required a significant amount of wholesaling services. Revenue is expected to decline in the current year as production volumes fall to previous levels. Although industry profit has fluctuated over the past five years, it has generally trended upwards.Industry revenue is highly volatile...read more.

Industry Statistics & Market Size
Revenue
$21bn
Annual Growth 13-18
2.5%
Forecast Growth 18-23
Profit
Employment
3,140
Businesses
359

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 Key Buyers Chapter

    The Cereal Grain Wholesaling industry has low market share concentration. Although a few large grain traders account for the majority of industry revenue, the four largest players control less than 40% of the market. Over the past decade, multiple takeovers have increased concentration. For example, Cargill acquired the Australian Wheat Board’s commodity business in December 2010, and Glencore Grain acquired Viterra in December 2012. These acquisitions have been due to deregulation, which has encouraged merger and acquisition activity. Numerous smaller participants also operate in niche segments of the market, servicing narrow geographic areas or dealing a small number of grains. How...purchase to read more.

    Additional Insights for the Cereal Grain Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cereal Grain Wholesaling Industry 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
  • Rice
  • 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
  • Legumes
  • Oilseeds
  • Rice
  • 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
  • Seed users
  • 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
  • Purchases
  • Wages
  • Depreciation
  • Rent, utilities and other
  • Chart: Cost Structure Benchmarking – Sector vs Cereal Grain Wholesaling

  • Basis of 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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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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