Grass is always greener: Revenue declines as improving weather supports pasture growth

Revenue for the Farm Animal Feed Production industry has contracted over the past five years. Volatile weather patterns have contributed to shifting demand for animal feed and fluctuating grain prices over the period, which have affected industry demand. The major companies in the industry, which together earn almost 80% of industry revenue, have been able to use their size to reduce their exposure to these sources of revenue volatility, and have remained profitable over the period. Industry revenue is expected to decline at an annualised 3.5% over the five years through 2017-18. This decline is primarily attributable to smaller herd sizes. Industry revenue is anticipated to decline by 2.0% in 2017-18, to $2.2 billion.Annual rainfall has been volatile over the past five more.

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

Industry Threats & Opportunities

  • Volatile weather patterns and fluctuating grain prices have contributed to revenue volatility
  • The industry’s fortunes are tied to national weather patterns, which means demand can be volatile
  • Global grain prices are forecast to increase, supporting the industry’s performance
  • Industry Report - Industry Locations Chapter

    Industry operators are largely concentrated in the eastern states of Australia, in New South Wales, Victoria and Queensland. Australia's Grain Growing industry is also heavily concentrated in these three states. Geographic proximity to grain inputs helps ensure easy supply to manufacturers. Operators are generally located close to downstream markets, which are also mostly located along the eastern seaboard. This helps reduce costs associated with transporting feed to customers. The low proportion of farms located in Tasmania, the Northern Territory and the Australian Capital Territory discourage feed manufacturers from basing themselves in these states...purchase to read more.

    Additional Insights for the Farm Animal Feed Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Farm Animal Feed Production Industry are

  • Economies of scale
  • Supply contracts in place for key inputs
  • Ability to forward sell production when appropriate
  • IBISWorld analysts also discuss how external factors such as Demand from sheep-beef cattle farming and Domestic price of coarse grains in the Farm Animal Feed Production industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    Look under the hood?

    Download a FREE sample report

    Top 500 Companies List
    has been released

    Click here for more

    What's in this report

    What is the Farm Animal Feed Production Industry?

    Animal feed manufacturers make processed feed for livestock, including aquaculture livestock. Industry products include milled grain in bulk bagged or pellet form, mixtures of unmilled grains, and meals and concentrates. Feed often includes added vitamins, minerals and salts to provide improved nutrition to animals. The industry excludes pasture grazing, hay, silage feed and unprocessed grains.

    Industry Products
  • Wheat feed
  • Barley feed
  • Sorghum feed
  • Maize, triticale and lupin feed
  • Oats feed
  • Oilseed and other non-cereal grain feed
  • Other animal feed
  • Industry Activities
  • Beef cattle feed production
  • Dairy cattle feed production
  • Pig feed production
  • Poultry feed production
  • Equine feed production
  • Aquaculture feed production
  • 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 sheep-beef cattle farming
  • Domestic price of coarse grains
  • Domestic price of wheat feed
  • Level of annual rainfall
  • Trade-weighted index

  • Current Performance
  • Grain market movements
  • Weather
  • Something fishy
  • Competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Global influences
  • Weather forecast
  • Product enhancement
  • Industry structure
  • Table: Farm Animal Feed Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Farm Animal Feed Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Beef Cattle Farming
  • Dairy Cattle Farming
  • Poultry Meat Farming
  • Horse Farming
  • Aquaculture

  • Key Selling Industries
  • Grain Growing
  • Rice Growing

  • Products & Services
  • Wheat feed
  • Barley feed
  • Oilseed and other non-cereal grain feed
  • Other animal feed
  • Sorghum feed
  • Maize, triticale and lupin feed
  • Oats feed
  • Chart: Farm Animal Feed Production Industry Products and Services Segmentation

  • Demand Determinants
  • Environmental factors
  • Cattle numbers
  • Dietary trends
  • Global demand

  • Major Markets
  • Beef cattle farms
  • Export markets
  • Dairy cattle farms
  • Other farms
  • Sheep farms
  • Poultry farms
  • Pig farms
  • Chart: Major Market Segmentation for the Farm Animal Feed Production 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 Farm Animal Feed Production

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Farm Animal Feed Production Industry

  • Industry Globalization
    Ridley Corporation Limited, Riverina (Australia) Pty Ltd, Inghams Group Limited, Ricegrowers Limited,
  • Table: Ridley Corporation Limited - financial performance
  • Table: Riverina (Australia) Pty Ltd - financial performance
  • Table: Inghams Group Limited - financial performance
  • Table: Ricegrowers Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Farm Animal Feed Production 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 Farm Animal Feed Production 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
  • Animal feed produced by compressing various raw materials and additives together.
  • Sorghum
  • A genus of grasses, some of which are grown for grain. Sorghum is used in the production of alcoholic beverages, biofuels and fodder.
  • Triticale
  • A type of grain that has been modified to exhibit the yield potential of wheat and the disease tolerance of rye.
  • What Our Customers Say

    Why buy this report?

    The Farm Animal Feed Production market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Farm Animal Feed Production:
    • 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 Farm Animal Feed Production 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 Farm Animal Feed Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.