Egg Farming in Australia Industry Market Research Report Now Updated by IBISWorld

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The Egg Farming industry has faced tough trading conditions, but consolidation of industry players is expected to improve industry productivity and profit over the next five years. For this reason, industry research firm IBISWorld has updated its report on the Egg Farming industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Industry firms scramble to recover from higher operating costs

The Egg Farming industry in Australia has benefited from an improved public perception of eggs over the past five years after a long-term decline in egg consumption per capita. For this reason the demand for eggs has increased over the five years through 2012-13, as new research suggests eggs are healthier than previously believed. Moreover, the renewed popularity of cooking shows in Australia has encouraged people to cook with eggs and egg products. According to IBISWorld industry analyst Andy Brennan, “demand for free-range eggs in particular has boomed, as consumers take into consideration animal welfare issues when purchasing food items”. Despite this, industry revenue is forecast to decrease 1.9% in 2012-13 to reach $445.2 million, due to structural changes in the way eggs have been produced.

Some cracks have appeared in the industry over the past five years. These have included large cost increases due to significant rises in feed prices. “The industry has also faced a jump in expenses with an increase in the legal limit for cage sizes, which was implemented 1 January 2008,” says Brennan. “This has required a large capital investment by egg farmers and forced a large number of smaller cage egg producers out of the industry.” This resulted in a fall in overall production and an egg shortage over 2008-09 and 2009-10, as the industry scrambled to consolidate and improve production levels. For these reasons, industry volatility has been particularly high over the five years through 2012-13. Large declines in revenue in 2008-09 and 2009-10 due to changes in production methods caused revenue to contract at an annualised rate of 4.3% over the five years through 2012-13.

The outlook for the industry appears bright. Consolidation of players to improve productivity levels is anticipated as larger players take advantage of economies of scale and boost profit levels. In addition, growth will be supported by increased demand for value-added egg products and a further small rise in per capita consumption. Farmgate prices will benefit from the growing share of higher value free-range eggs demanded by consumers at the expense of cage eggs.

Market share concentration in the Egg Farming industry is medium. The three largest companies are Alimfresh Pty Ltd, Sunny Queen Pty Limited and Farm Pride Foods Limited.

For more information, visit IBISWorld’s Egg Farming report in Australia industry page.

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

IBISWorld industry Report Key Topics

Companies in this industry farm poultry for production of eggs and hatch egg breed chicks.

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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