Industry Analysis & Industry Trends
Government subsidies for ethanol production and increasing biofuel mandates are keeping corn, wheat and soybean wholesalers busy. Demand for corn and soybeans, key components in ethanol manufacturing, skyrocketed in response to the Energy Policy Act of 2005. As production of these products increased, so did revenue for wholesalers. Though the demand surge is waning, wholesalers are able to stay afloat by being competitive in the international market... purchase to read more
Industry Report - Industry Investment Chapter
The Corn, Wheat and Soybean Wholesaling industry exhibits a high level of capital intensity. Using wages as a proxy for labor and depreciation as a proxy for capital, IBISWorld estimates that for every dollar spent on labor in the industry, $1.91 will be spent on capital. While many wholesaling industries rely heavily on an extensive management and sales force, grains and field beans are sold through large elevators and trucks used to store and distribute high volumes of product. Therefore, it takes relatively few people to distribute the industry's products. Wholesaling involves adding value by storing and distributing large volumes of stock as efficiently as possible. Because a lot of product is stored, capital makes up a large proportion of variable costs... purchase to read more