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Livestock and Other Agricultural Supplies Wholesaling in Australia Industry Market Research Report Now Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

May 04, 2014, 16:00 ET

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IBISWorld Market Research
IBISWorld Market Research

Growth is expected to be modest, as many of the larger agricultural companies absorb wholesaling functions

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Melbourne, Australia (PRWEB) May 05, 2014 -- The Livestock and Other Agricultural Supplies Wholesaling industry's main activities are divided into farm produce wholesaling and farm supplies wholesaling. Farm produce wholesaling includes livestock and feed wholesaling, and accounts for 78.0% of industry revenue. Other important wholesaling includes cotton, plant and seed wholesaling. According to IBISWorld industry analyst Ryan Lin, “the industry has faced significant volatility in demand and weather conditions over the past five years, with the prices of agricultural inputs and products fluctuating significantly.” Farm supplies that follow price trends include fodder, feedstuff, fuels and lubricants. Over 2013-14, livestock sales and slaughter rates are expected to grow, increasing demand for the industry's livestock wholesaling. As overall conditions improve over 2013-14, short-term demand for the industry will fall in areas such as feed wholesaling, as farms have become more self-sufficient. Overall, revenue is expected to contract at an annualised 1.1% over the five years through 2013-14, to $17.5 billion. Revenue is forecast to decline by 2.8% over 2013-14.

“Revenue from farm outputs sold by the industry, such as raw sugar, hides, leather and nursery stock, has fluctuated over the past five years,” says Lin. The causes include drought, floods, and world demand and supply conditions. The industry also undertakes livestock auctioning, which is largely tied to activity in the livestock sector and slaughter rates. The livestock sector has faced volatile trading conditions over the past decade due to extreme weather conditions. These factors have produced significant swings in revenue over the past five years. Until 2012-13, farmers sold less livestock as they focused on rebuilding herds. The industry exhibits a low level of market share concentration, with Agrium SP Holdings Pty Ltd and Elders Limited the only major players.

As conditions improve and the Australian dollar depreciates, the role of Australian agriculture in the economy is expected to grow. As a result, industry revenue is forecast to increase. Growth is expected to be modest, as many of the larger agricultural companies absorb wholesaling functions into their own operations through vertical integration. Players in the Livestock and Other Agricultural Supplies Wholesaling industry will have to contend with increasing e-commerce and shortened supply chains. This is likely to fuel industry consolidation, causing an overall decline in the number of enterprises over the next five years.

For more information, visit IBISWorld’s Livestock and Other Agricultural Supplies Wholesaling report in Australia industry page.

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

IBISWorld industry Report Key Topics
Companies in this industry wholesale livestock (including agent and brokering services), skins and hides, tallow, stock feed, farm supplies and agricultural products (excluding wool, cereal grains, fruit, vegetables and dairy products). The industry includes wholesalers operated by marketing authorities, but excludes the wholesale of agricultural chemicals (e.g. fertilisers and pesticides), fencing materials, veterinary drugs, machinery and equipment.

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.

Gavin Smith, IBISWorld, http://www.ibisworld.com.au, +61 396553833, [email protected]

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