Industry Analysis & Industry Trends
The Farm Animal Feed Production industry's prospects have fluctuated over the past five year period alongside dramatic spikes in feed prices as well as increased demand from downstream farms supplies wholesalers. Global population growth and expansion of developing economies have boosted demand for meat, requiring greater supplies of feed to match growing production. At the same time, a severe drought caused commodity prices to increase dramatically in 2012. During the five years to 2019, IBISWorld forecasts industry revenue to increase. The emergence of a middle-class in developing countries around the world has increased demand for meat products.... purchase to read more
Industry Report - Industry Investment Chapter
The Farm Animal Feed Production industry has a relatively high level of capital intensity because production requires machines to process inputs, manufacture the products and package them. For every dollar spent on labor, the average industry producer spends about $0.35 on capital improvements. As more companies rely on equipment to automate processes and reduce per-unit production costs, the machines endure more wear and tear, creating the need for additional capital investment.
Nonetheless, capital intensity varies considerably with a manufacture's size. Small- to medium-size facilities generally have a smaller capital-to-labor ratio because they lack the resources to invest in expensive technology and equipment... purchase to read more