Farm Animal Feed Production in Australia Industry Market Research Report Now Available from IBISWorld

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The Farm Animal Feed Production industry is highly volatile and after facing difficult trading conditions, the industry’s fortunes are set to improve. For these reasons, industry research firm IBISWorld has added a report on the Farm Animal Feed Production industry in Australia to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Favourable price movements and increased demand to feed growth

The Farm Animal Feed Production industry has endured difficult trading conditions over the past five years due to unfavourable price movements and volatile weather conditions. According to IBISWorld industry analyst Suzannah Rowley, “prices for feed grains products have fluctuated substantially over the past five years in response to global production levels and prices”. This affects the industry, given that feed grains are its major product and it has a high level of international trade exposure. As such, the oversupply of grains and wheat on the global market during 2008-09 and 2009-10 caused world prices to plummet in line with industry revenue. The situation reversed in 2010-11. Wheat and other grain prices soared as global grain production plummeted due to adverse weather conditions across major producing regions. This was a boon for Australia grain and animal feed producers because their bumper crops could be sold at elevated prices.

“Greater domestic rainfall and better weather conditions have led to improved pasture conditions and farmers choosing to rebuild herds. This has decreased overall demand for the industry over the past few years,” says Rowley. As a result, industry revenue is expected to decline at an annualised 5.8% over the five years through 2012-13 to reach $4.41 billion. The Farm Animal Feed Production industry's performance is expected to improve over the next year, with revenue forecast to increase by 18.8% in 2012-13 in response to favourable price movements for major products. Profitability has also exhibited significant volatility over the past five years due to the erratic price movements for feed grain products. Moreover, producers of commercial fish feed have also enjoyed an increase in demand over the past five years thanks to the rapid growth of Australia's Aquaculture industry.

The industry's fortunes are set to improve over the next five years. Demand for industry products is expected to increase on the domestic market given a possible return to drought conditions. Demand for Australian farm animal feed is also forecast to rise on the global market thanks to the rapid industrialisation of developing countries such as China. Feed grain and wheat prices are also expected to increase over the next five years, which will further buoy industry revenue growth and profitability.

The level of market share concentration within the industry is medium. The top four players are Ridley Corporation Limited, Riverina (Australia) Pty Ltd, Inghams Enterprises Pty Limited and Ricegrowers Limited.

For more information, visit IBISWorld’s Farm Animal Feed Production report in Australia industry page.

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

IBISWorld Industry Report Key Topics

Animal feed manufacturers make food for livestock. Producers use remnants of flour milling, sugar production and other food processing as ingredient inputs to animal feed. This industry excludes pasture grazing, hay and silage feed.

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
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