Seed Production in Australia Industry Market Research Report Now Available from IBISWorld

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The worst years of industry performance coincided with the worst of Australian drought. As agricultural production suffered from punishing weather conditions, demand for seeds fell substantially as farmers avoided purchasing seeds with no end to the drought in sight. However, the industry’s performance is improving on the back of higher seed prices and stronger demand for seeds related to high agricultural commodity prices. For these reasons, industry research firm IBISWorld has added a report on the Seed Production industry in Australia to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Increasing investment and greater involvement from the world's largest seed companies will boost research and development

The worst years for the Seed Production industry coincide with the worst of Australian droughts during 2007-08, 2008-09 and 2009-10. As agricultural production suffered from punishing weather conditions, demand for seeds fell substantially as farmers avoided purchasing seeds with no end to the drought in sight. According to IBISWorld industry analyst Ee Jen Lee, “while this was succeeded with higher than average rainfall the following year, two consecutive years of weak demand have resulted in an 5.4% annualised contraction of industry revenue”. In 2012-13, Seed Production industry revenue is projected to grow a moderate 1.8% to reach $292.8 million. This growth will be on the back of higher seed prices and stronger demand for seeds related to high agricultural commodity prices.

Other factors influencing demand for seeds are policy developments. Lee adds, “while there is no indication from regulators or governments that genetically modified canola moratoriums may be lifted in the states of South Australia and Tasmania, these will be due for review during the next five years”. Further, water use policies, especially those concerning the Murray-Darling Basin may change farmers' decisions on the variety of seed used.

The Seed Production industry has a medium level of concentration, and major companies include Pacific Seeds Pty Limited, PGG Wrightson Limited, Bayer CropScience Pty Ltd and Heritage Seeds Pty Ltd. Increasing investment and greater involvement from the world's largest seed companies in Australia's local Seed Production industry will boost seed research and production capabilities. Further, the development of Asian agriculture and increased reliance on Australia's research capabilities are expected to have a positive effect on export volumes. As the average annual rainfall is expected to decline from its current peak over the next five years through 2017-18, Seed Production industry revenue is forecast to grow at a moderate rate, but may exceed forecasts if operators can successfully tap into growing export markets.

For more information, visit IBISWorld’s Seed Production report in Australia industry page.

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IBISWorld industry Report Key Topics

This industry primarily produces seeds for propagation. This includes seeds for crops, including grains, oilseeds, vegetables and fruit, flowers and miscellaneous crops. Large agricultural companies participate in the industry through their supply of genetically modified seeds.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
(310) 490-5973
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