Industry Analysis & Industry Trends
In the past several decades, marked changes in livestock production have paralleled shifts in farm animal feed formulation. Bolstered by spikes in feed prices and increasing demand from downstream farm supplies wholesalers, the Farm Animal Food Production industry's revenue has increased at an annualized rate of 3.7% to $31.7 billion during the past five years. Global population growth and expansion of developing economies have further boosted demand for meat, requiring greater supply of feeds to match growing production. Despite a decline in per capita meat consumption in the United States, demand for farm animal feed was maintained by downstream industries, such as dairy farms. Consequently, industry revenue is expected to rise another 1.5% during 2012.... 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 $0.34 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