Stunted growth: Revenue volatility has stemmed from agricultural market fluctuations

The performance of the Seed Production industry has been volatile over the past five years. Seed producers are closely linked to the volatile Agriculture subdivision and industry demand can fluctuate significantly from year to year. Industry revenue is expected to grow at an annualised 2.9% over the five years through 2016-17, to reach $490.3 million. However, this modest growth figure does not accurately reflect the wide swings in revenue that have occurred over the past five years. Industry revenue is anticipated to increase by 2.1% in 2016-17, with increased rainfall expected to boost demand for seed.Industry demand fluctuates according to conditions at the farm more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Fluctuations in agricultural conditions have led to volatility in industry demand and revenue
  • Several multinational seed companies have expanded their influence in Australia
  • Policy developments regarding GM seeds are anticipated to influence the industry’s performance
  • Industry Report - Industry Investment Chapter

    The Seed Production industry is moderately capital-intensive. Investment in specialised machinery for production and research increases the industry's capital investments. Depreciation costs increase proportionally to investment in capital, such as computers, laboratories and proprietary software used for genetics research. As the need for higher yielding crops increases amid worsening climatic conditions, investment in technology is likely to increase. Consequently, depreciation costs and the industry's capital intensity level is projected to increase over the next five years.Despite this, the industry remains reliant on labour. Ext...purchase to read more.

    Additional Insights for the Seed Production Industry

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

  • Highly trained workforce
  • Ability to quickly adopt new technology
  • Having an effective performance monitoring system
  • IBISWorld analysts also discuss how external factors such as Level of annual rainfall and Demand from grain growing in the Seed Production industry impact industry performance..

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    What's in this report

    What is the Seed Production Industry?

    The industry primarily produces seeds for propagation, including seeds for crops, such as grains, oilseeds, vegetables and fruit, and flowers. The industry includes large agricultural companies that produce genetically modified seeds, but excludes companies that import seeds and do not maintain local seed production capabilities.

    Industry Products
  • Cereal seeds
  • Field and cottonseeds
  • Oilseeds
  • Fruit and vegetable seeds
  • Other seeds
  • Industry Activities
  • Producing seeds
  • Research and development of seed traits
  • Marketing seeds
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Level of annual rainfall
  • Demand from grain growing
  • Trade-weighted index
  • Domestic price of wheat feed
  • Natural disasters

  • Current Performance
  • Climatic conditions
  • Prices influencing demand
  • Foreign companies
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Research and development
  • Genetically modified organisms
  • Industry structure
  • Table: Seed Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Seed Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grain Growing
  • Beef Cattle Farming
  • Cotton Growing
  • Zoological and Botanical Gardens
  • Outdoor Vegetable Growing

  • Key Selling Industries
  • Biotechnology
  • Fertiliser Manufacturing
  • Machinery and Scaffolding Rental
  • Scientific Research Services
  • Water Supply

  • Products & Services
  • Cereal seeds
  • Fruit and vegetable seeds
  • Other seeds
  • Field and cottonseeds
  • Oilseeds
  • Chart: Seed Production Industry Products and Services Segmentation

  • Demand Determinants
  • Crop farmer demand
  • Livestock farmer demand

  • Major Markets
  • Export markets
  • Other crop farmers
  • Livestock farmers
  • Cereal farmers
  • Non-crop farmers
  • Non-agricultural users
  • Chart: Major Market Segmentation for the Seed 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 Seed Production

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Seed Production Industry

  • Industry Globalization
    Heritage Seeds Pty Ltd, Advanta Seeds Pty Ltd, Bayer CropScience Holdings Pty Ltd, PGG Wrightson Limited,
  • Table: Heritage Seeds Pty Ltd - financial performance
  • Table: Advanta Seeds Pty Ltd - financial performance
  • Table: Bayer CropScience Holdings Pty Ltd - financial performance
  • Table: PGG Wrightson Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Seed 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 Seed Production Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Crop Breeding
  • The selection and development of crops and seeds that exhibit more desirable characteristics.
  • Cryopreservation
  • A process that prevents damage caused by chemical reactivity or time, by cooling the seeds to sub-zero temperatures.
  • Genetically Modified Organisms (Gmos)
  • Organisms, including seeds and food, that have had their genetic structure altered through biotechnology for more favourable traits.
  • Seed Treatment
  • Both the treatment of seeds once sowed and planted, as well as the treatment and alteration of seeds before they are sold to crop growers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Seed Production 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:
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    • Identify threats and opportunities
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    • Quickly build competitive intelligence
    This report on Seed 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 Seed 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 Seed Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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