Second seed: Volatile growing conditions have constrained the industry's revenue performance

Revenue in the Seed Production industry has fluctuated over the past five years. Seed producers are closely linked to the volatile Agriculture subdivision, and industry demand can vary significantly from year to year. Industry revenue is expected to decrease at an annualised 1.1% over the five years through 2018-19, to $484.3 million. However, this modest decline does not accurately reflect the wide swings in revenue that have occurred over the past five years. Industry revenue is anticipated to decrease by 8.5% in 2018-19 as drought conditions affect demand from most agricultural industries. This trend is in contrast to the strong revenue growth reported in 2016-17, as abundant rainfall boosted industry demand.Industry demand fluctuates according to conditions at the farm more.

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

Industry Threats & Opportunities

  • Fluctuations in agricultural conditions have prompted industry demand and revenue volatility
  • 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 - Starting a New Business Chapter

    Moderate barriers prevent entry into the Seed Production industry. Capital requirements for industry entry are moderate and there is a high knowledge requirement for seed producers. Biological and agricultural expertise is a crucial element to successful seed production. Another deterrent for potential entrants is R&D requirements, reflected in the industry's high rate of technological change. For a company to produce a new seed variety, a substantial amount of time must be devoted to the production and evaluation of a seed to ensure it is ready for current markets. The time and costs involved in this process may be high over the long term for new companies that are trying to recover star-up costs. Fur...purchase to read more.

    Additional Insights for the Seed Production Industry

    IBISWorld has determined the most important Key Success Factors for the Seed Production 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 Demand from grain growing and Level of annual rainfall 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 and oilseeds
  • Field and cottonseeds
  • 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
  • Demand from grain growing
  • Level of annual rainfall
  • Trade-weighted index
  • Domestic price of wheat feed

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

  • Industry Outlook
  • R&D
  • 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
  • Field and cottonseeds
  • Cereal seeds and oilseeds
  • Fruit and vegetable seeds
  • Other seeds
  • Chart: Seed Production Industry Products and Services Segmentation

  • Demand Determinants
  • Crop farmer demand
  • Livestock farmer demand

  • Major Markets
  • Livestock farmers
  • Export markets
  • Cereal farmers
  • Other crop 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
  • Internal competition
  • External 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 Seeds Australia Holdings Pty 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 Seeds Australia Holdings Pty 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 (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)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Research and Development (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bumper Crop
  • A crop that has yielded an unusually productive harvest.
  • 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.
  • What Our Customers Say

    Why buy this report?

    The Seed 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 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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