Industry Analysis & Industry Trends
Unlike most wholesalers, farm supply wholesalers are somewhat shielded from the rising trend of wholesale bypass due to their ability to stockpile surplus seed and sell when demand crests. Growing farm input prices will lead to steady revenue growth over the five years to 2018. Nevertheless, uncertainty regarding GM seeds and crops will cut into industry growth, representing a potential threat in the years to come... purchase to read more
Industry Report - Industry Analysis Chapter
The Farm Supplies Wholesaling industry largely depends on demand from the agriculture sector as a whole. The price of inputs is the single-largest determinant of revenue for industry players. Indeed, because of high input prices, IBISWorld expects revenue to grow at an average annual rate of 2.5% to $102.6 billion over the five years to 2013. While wholesale bypass (a practice in which retailers source inputs directly from producers) and seasonal variations can also affect industry sales, successful operators have managed to weather these threats.
The need for feed
The main driver of revenue growth in the industry has been an increase in the price of farm inputs over the past five-year period. In 2008, significant selling price growth pushed revenue up 6.0%... purchase to read more