Fallow: Fluctuating grain prices have negatively affected industry revenue

The Grain Growing industry produces a range of cereal grain crops, including barley, wheat, maize, oats and other grains. High revenue volatility has limited the industry's performance over the past five years. Fluctuating rainfall levels and grain prices have created a difficult operating environment for many growers. Grain output across all major grain product categories has also fluctuated over the period, reducing consistency and ease of planning and budgeting for growers. Overall, industry revenue is expected to grow at an annualised 0.3% over the five years through 2018-19 to reach $617.4 million. This includes a projected fall of 0.9% in 2018-19, as weakening grain prices weigh on industry revenue...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Grain growers have contended with significant revenue volatility over the past five years
  • New Zealand’s growing dairy cattle herd is boosting demand for grain used in livestock feed
  • Industry growers will continue to be exposed to volatile rainfall and prices for their output
  • Industry Report - Industry Locations Chapter

    The industry's geographic spread is heavily skewed towards the Canterbury region, reflecting the region's large land mass. The Canterbury region is the largest in New Zealand by area, with 3.0 million hectares of agricultural and exotic forestry land. This represents approximately 20% of New Zealand's farmland. Furthermore, summers in Canterbury are usually relatively dry, allowing for easy harvesting of grains. As a result, the Canterbury region accounts for almost 60% of industry growers, far outweighing the region's share of the population. Conversely, in regions such as Otago and Northland, it is often difficult to harvest the grain in a good condition due to the climate. Con...purchase to read more.

    Additional Insights for the Grain Growing Industry

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

  • Establishment of export markets
  • Appropriate climatic conditions
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Domestic price of coarse grains and Domestic price of wheat in the Grain Growing industry impact industry performance..

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    What's in this report

    What is the Grain Growing in New Zealand Industry?

    Industry operators primarily grow wheat, cereal and coarse grains (excluding rice). Operators also grow oilseeds, pasture seeds, lupins, and field peas or beans.

    Industry Products
  • Wheat
  • Barley
  • Oats
  • Maize
  • Other cereal grains
  • Industry Activities
  • Barley growing
  • Wheat growing
  • Maize growing
  • Oats growing
  • Other cereal grain growing
  • Table of Contents

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

  • Current Performance
  • Revenue volatility
  • International trade
  • Participation

    and profit

  • Chart: Revenue Growth

  • Industry Outlook
  • Maturity and marketing
  • New technology
  • Participation

    and profit

  • Table: Grain Growing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Cereal, Pasta and Baking Mix Manufacturing in New Zealand
  • Cereal Grain Wholesaling in New Zealand
  • Beef Cattle Farming in New Zealand

  • Key Selling Industries
  • Shearing, Cropping and Agricultural Support Services in New Zealand
  • Water Supply in New Zealand

  • Products & Services
  • Barley
  • Wheat
  • Maize
  • Oats
  • Other cereal grains
  • Chart: Grain Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Food manufacturing industries
  • Livestock industries
  • Export markets
  • Chart: Major Market Segmentation for the Grain Growing Industry

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

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Grain Growing 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 Growing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A cereal grass that has short leaves and compact flower spikes, as well as seeds that are used mostly to feed farm animals or make malt drinks such as beer.
  • Maize
  • Also known as corn, maize is a cereal grain first domesticated by indigenous people in southern Mexico.
  • Threshing
  • The process of separating grains from other parts of the crop.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Grain Growing in New Zealand market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Grain Growing in New Zealand:
    • 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 Growing in New Zealand 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 Growing in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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