Poultry Meat Farming in Australia Industry Market Research Report Now Updated by IBISWorld

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Although grower fees for poultry farmers are expected to increase, farmers’ profit margins will be protected by their ability to band together and collectively bargain. For this reason, industry research firm IBISWorld has updated its report on the Poultry Meat Farming industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Healthy eating and price trends spur poultry consumption

The Poultry Meat Farming industry continues to benefit from growing demand for poultry meat by consumers. Chicken, which accounts for an estimated 96.7% of industry revenue, is the most consumed meat in Australia on a per capita basis. This has not always been the case. Until the 1970s lamb, beef and pig meat were all more popular than chicken. According to IBISWorld industry analyst Andy Brennan, “chicken's renaissance, which intensified through the 2000s, has mainly been due to its relatively low price compared with other meats and the perceived health benefits of the meat”. Poultry growers have benefited from this downstream demand. Over the five years through 2012-13, IBISWorld expects industry revenue to grow at an annualised 4.0% to reach $431.3 million. In 2012-13, the industry is expected to grow 1.3%.

The industry is characterised by a large number of small farms, mostly family-run operations. The majority of poultry is produced by growers under contract to the major poultry processors Inghams and Baiada. Farmers have supply contracts with processors, with pricing calculated on a price-per-bird basis. For this reason, farmer profit margins are somewhat protected from rising input costs. The major of poultry processors are vertically integrated and operate in the industry through their own in-house farms.

The Poultry Meat Farming industry's strong performance is expected to continue over the next five years. “Chicken consumption is expected to grow on a per capita basis as processors and retailers continue to promote the meat's health benefits”, says Brennan. “While competition from other meats, such as lamb and beef, is expected to intensify, poultry retains a competitive advantage because it is relatively cheap to produce and is not exposed to as many seasonal variations as other meat products”. Although grower fees are expected to increase only marginally, growers will be protected by their ability (provided by the ACCC) to band together and collectively bargain. Industry consolidation is expected to continue as larger conglomerates like ProTen and Rural Funds Management build more sheds and ramp up production.

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

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

IBISWorld industry Report Key Topics

This industry is made up of companies that raise poultry for meat production. Poultry includes chickens, turkeys, ducks, geese and other game birds. This industry begins with the fertilisation of meat-breed eggs, includes the hatching and raising of poultry for meat production, and ends with the supply of live birds ready for slaughter (usually aged between five and eight weeks) to poultry processors.

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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