Grain Growing in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) October 06, 2014 -- Operators in the Grain Growing industry in Australia are highly export-oriented and produce crops such as wheat, barley, sorghum and other grains. The industry has sustained high levels of revenue volatility over the past five years, largely influenced by adverse weather conditions that have affected local supply. According to IBISWorld industry analyst Brooke Tonkin, “fluctuations in global grain prices and global crop supply over the past five years have added to revenue volatility.” Industry revenue is forecast to expand by an annualised 8.5% over the five years through 2014-15, to reach $13.8 billion. However, plummeting revenue in 2009-10 has skewed the industry's revenue growth figure over the period. Industry revenue is forecast to fall 3.8% in 2014-15, due to an anticipated reduction in the nation's grain crop.
The industry tends to follow a cyclical pattern, whereby sudden production declines cause prices to spike. Farmers then increase planting to reap the benefit of higher prices, but as production bounces back prices recede in the following season. Another long-term trend that has increased pressure on global grain stocks and prices has been the gradual rise in demand for grains, mainly for livestock feed in developing countries, as meat consumption rises in line with income. During 2010-11, industry revenue jumped as grain prices soared. “The price increase was in response to a sharp contraction in global grain production due to adverse weather conditions in major grain-producing countries,” says Tonkin. This was compounded by the long-term rise in global demand for grains used for livestock feed, biofuels and human consumption. The industry exhibits low levels of market share concentration and has no major players.
Industry performance remains susceptible to varying weather conditions. However, greater emphasis on increasing operational efficiency is expected to strengthen profit margins. Industry growth prospects will lie with emerging Asian economies, where rising per capita income and changing dietary habits are projected to support demand for Grain Growing industry products. Growing meat consumption will lead to the expansion of livestock industries, which drive demand for feed grains.
For more information, visit IBISWorld’s Grain Growing industry in Australia report page.
This industry consists of farms that grow coarse grains or other cereal crops. Other farms in the industry grow oilseeds, peanuts, lupins, dry field peas and beans. This industry excludes rice growing.
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IBISWorld industry Report Key Topics
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, +61 396553838, [email protected]
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