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

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Continued health-consciousness among consumers has supported the trend towards lean poultry. 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

Per capita poultry consumption is higher than that of other meat products due poultry being an affordable lean source of protein.

Conditions have remained largely favourable for the operators in the Poultry Meat Farming industry in Australia over the past five years. Per capita consumption has grown, largely due to poultry's low price relative to other meats. Continued health-consciousness among consumers has also supported the trend towards lean poultry. Despite this, the industry has only managed modest revenue growth over the past five years. According to IBISWorld industry analyst Brooke Tonkin, “farmgate poultry prices have remained steady, save for the occasional spike caused by a supply shortage.” Consequently, expanding production has driven the industry's revenue growth over the period. Industry revenue is projected to post 2.7% annualised growth over the five years through 2014-15, to reach $463.6 million. Falling farmgate prices in 2014-15 are anticipated to depress industry revenue by 0.4%. Per capita poultry consumption is higher than that of other meat products such as beef, lamb, mutton and pork. This is due to poultry's low absolute price relative to other meats, and its perception among consumers as an affordable lean source of protein. Per capita poultry consumption has grown over the past five years, to reach an estimated 46.0 kilograms in 2014-15. This has boosted demand for the industry and encouraged farmers to expand production.

The industry exhibits low levels of market share concentration. It is made up of a large number of small farms, and no major players exist. Farmers contract with major poultry processors to produce the majority of industry products. “Under the terms of these contracts, processors generally pay for the majority of input costs, such as feed and veterinary services,” says Tonkin. Consequently, industry profit margins are somewhat protected from rising input costs. A number of companies in the industry are vertically integrated and have a range of operations, from breeding and farming to processing and distribution.

The Poultry Meat Farming industry is expected to continue growing over the next five years, though at a slower rate than the past five years. Per capita consumption is forecast to grow as processors and retailers continue to promote the health benefits of poultry. However, poultry price growth is anticipated to outstrip the price growth of its substitutes, including beef and fish, which will constrain consumption and revenue growth over the next five years.

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

Players in the industry primarily farm poultry for meat production. Poultry includes chickens, ducks, turkeys, geese and other game birds. Industry operators fertilise eggs, then hatch and raise poultry for meat production. They supply live birds ready for slaughter, usually aged between five and eight weeks, to poultry processors.

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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.

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Gavin Smith
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