Prepared Animal and Bird Feed Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld

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The performance of the Prepared Animal and Bird Feed Manufacturing industry is tied to variations in weather patterns, outbreaks of disease, herd stocks and pet ownership levels. Despite these uncertainties, the industry has managed to remain resilient over the past five years while also being faced with highly volatile commodity prices and waning profit margins. For these reasons, industry research firm IBISWorld has updated its report on the Prepared Animal and Bird Feed Manufacturing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Growth in meat consumption and herd stocks has primarily sustained modest revenue growth

The performance of the Prepared Animal and Bird Feed Manufacturing industry is tied to variations in weather patterns, outbreaks of disease, herd stocks and pet ownership levels. Despite these uncertainties, the industry has managed to remain resilient over the past five years while also being faced with highly volatile commodity prices and waning profit margins. Growth in global meat consumption and consequently in herd stocks, has primarily sustained modest revenue growth, as the industry battled with dramatic fluctuations in demand and supply conditions. Further, the outbreak of animal diseases, such as avian influenza and mad cow disease, and the contamination of pet foods have impeded domestic production and demand. This has forced manufacturers to source their products from overseas markets. According to IBISWorld industry analyst Naren Sivasailam, “industry revenue has experienced some mixed results over the past five years”. Since 2007-08, industry revenue has grown by 0.3% per annum. However, revenue has declined over the past two years as the world has struggled with an oversupply issue after global demand fell away during the global financial crisis. During 2012-13, revenue is expected to fall by 0.7% to reach $3.86 billion.

Over the next five years, industry growth is expected to be underpinned by the global economic recovery, reflected in increased herd stocks, rising incomes and consumer sentiment, and a marginal increase in pet ownership levels. Further, advancements in technology and food safety, combined with clever product innovation are expected to alleviate some of the inherent risks associated with weather conditions and potential outbreaks of disease. “The expected increase in pet ownership and disposable incomes will drive demand for pet foods, a segment that is typified by high profit margins and brand-loyal consumers”, Sivasailam adds. Export growth is also anticipated over the next five years, as the economic rise of countries in the Asia-Pacific and South America drive demand for meat and animal feed.

The Prepared Animal and Bird Feed Manufacturing industry is characterised by a medium level of market share concentration. Although the industry has several small to medium size operators, the majority of its revenue is generated by the major players. IBISWorld estimates that the top five players in the industry are Mars Australia, Ridley, Nestle Australia, Riverina (Australia) and Ricegrowers. Concentration has grown due to an increase in acquisitions, along with organic growth for a majority of major players engendered by continued product innovation, strong brand loyalty and aggressive marketing.

For more information, visit IBISWorld’s Prepared Animal and Bird Feed Manufacturing report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Establishments in this industry manufacture prepared animal or bird feed, including cereal meal, grain offal or crushed grain for use as fodder (from whole grain, except from rice or rye).

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
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