Farm Supplies Wholesaling in Canada Industry Market Research Report Now Available from IBISWorld

Demand from key downstream industries involved in crop and animal production will strengthen as the overall economy improves and individuals spend more on food items. Nevertheless, commodity markets will continue to stifle steady revenue growth. For these reasons, industry research firm IBISWorld has added a report on the Farm Supplies Wholesaling in Canada industry to its growing industry report collection.

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The industry will remain volatile as the price of inputs continue to fluctuate.

New York, NY (PRWEB) August 10, 2014

The Farm Supplies Wholesaling industry has struggled amidst volatility in agriculture input prices over the past five years. Industry operators sell a variety of fertilizers, seeds and animal feeds to farmers in the agricultural sector whose farmers are the primary determinant of industry demand. While demand from industries involved in crop and animal production has risen steadily, fluctuations in the price of fertilizer and commercial feed were enough to stifle overall revenue growth during the period. IBISWorld estimates revenue has increased at a slow annualized rate over the past five years. Meanwhile, a decline in the price of fertilizer and commercial feed prices are expected to cause revenue to fall in 2014.

The industry continues to mirror broader trends of contraction and consolidation occurring in Canada's agricultural sector. As the overall number of farms continues to decline, more independent operators are merging into partnerships or being bought out by large corporations. According to IBISWorld analyst Will McKitterick, "arms are becoming larger and more mechanized as their operators leverage economies of scale to increase production and profitability." Farm supplies wholesalers are mimicking this trend to meet the evolving needs of large-scale farming. As a result, "the number of small operators has shrunk within the industry," says McKitterick. Furthermore, wholesalers are investing in technology to economize and increase logistical efficiencies. While innovation has helped edge up profit margins, it has also squeezed the industry workforce, which is currently contracting.

The Farm Supplies Wholesaling industry is made up of a small number of business operators throughout Canada. The industry is expected to continue to face volatility over the next five years. Demand from key animal and crop production industries will strengthen as the overall economy improves and individuals spend more on food items. Fertilizer prices are highly dependent on natural gas for the production of ammonia-based fertilizers. As the United States expands its hydraulic fracking efforts and more natural gas spills onto the market, the price of fertilizers is likely to fall. Meanwhile, sales of other important farm inputs (such as seeds and animal feeds) will continue to fluctuate in accordance with developments global commodity chains, creating more revenue volatility for industry operators. Overall, industry revenue is expected to increase at a slightly faster average annual rate in the five years to 2019.

For more information, visit IBISWorld’s Farm Supplies Wholesaling in Canada industry report page.

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IBISWorld industry Report Key Topics

The Farm Supplies Wholesaling industry distributes a range of goods to crop and livestock farmers, including grain and other farm supplies. A wholesaler may have an exclusive distributorship to sell a particular brand within a specified territory, but generally they sell products in competition with other wholesalers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized 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 US and Canadian 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


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