Industry Analysis & Industry Trends
Since flour mills provide goods that are considered diet staples, the industry will remain relevant in the years to come. Revenue and profit will depend on the price and production of wheat and rice, which are projected to be stable during the next five years. As companies vertically integrate and merge operations to take advantage of economies of scale, revenue will rise... purchase to read more
Industry Report - Industry Analysis Chapter
In the five years to 2013, the Flour Milling industry has benefited from spikes in grain prices that allowed firms to raise product prices and increase revenue. Consumer preferences shifted over the period, favoring healthy products. Similarly, whole wheat's contribution to cardiovascular health led to increased consumer demand for whole grain flour.
Wheat and rice input prices dictate the growth (and decline) of revenue because operators reflect changes in purchase costs in their final product prices. For example, a 2010 Russian export ban on wheat pushed up world demand, causing prices to skyrocket 41.4% in 2011. In turn, flour mills faced higher input costs and raised their own prices, pushing revenue up 16.7% in 2011... purchase to read more