Greener pastures: Declining prices and volatile conditions has inhibited revenue growth

Over the five years to 2018, revenue for the Agribusiness industry is expected to decline due to a falling agricultural price index. Declining agricultural prices have a carry-through effect as they flow through the supply chain, slowing industry revenue growth. However, rising consumer preferences for premium-priced organic and natural products have prevented greater declines in industry revenue. Moving forward, the industry is expected to experience a slow-but-steady rebound as improved economic conditions enable downstream buyers to demand more agricultural products and services. Sustained demand for food from developing countries and continued support for biofuel production are anticipated to continue bolstering demand for industry products over the next five years...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Declines in industry revenue can be attributed to a falling agricultural price index
  • The increasing adoption of GM products has also created challenges for agricultural producers
  • Higher commodity prices and greater production efficiency will support profitability
  • Industry Report - Industry Products Chapter

    This industry is the combination of a wide variety of agricultural-based industries. These industries are either directly involved in the business of growing agricultural commodities, or directly benefit from these growers by buying from them or selling to them.Food and supplies wholesalingAlong the agribusiness supply chain, the wholesalers and distributors take the largest cut of the revenue, accounting for an estimated 42.6% of industry revenue in 2018. Wholesalers are typically not as specialized as farmers or processors and manufacturers; therefore, fewer such establishments exist in this industry. Still, wholesaling operations are expected to account for over one-third of total agribusiness revenue. The...purchase to read more.

    Additional Insights for the Agribusiness Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Agribusiness Industry are

  • Access to the latest available and most efficient technology and techniques
  • Economies of scale
  • Ability to take advantage of government subsidies and other grants
  • IBISWorld analysts also discuss how external factors such as Agricultural price index and Natural disaster index in the Agribusiness industry impact industry performance..

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    What's in this report

    What is the Agribusiness Industry?

    The Agribusiness industry includes businesses that directly engage in or directly benefit from agricultural activities. Businesses in this industry may produce agricultural commodities, buy agricultural produce or supply goods and services to farms and the agriculture industry. This industry focuses on the food-supply chain up to, but not including, the point of retail sale.

    Industry Products
  • Crop and livestock farming
  • Food manufacturing
  • Agribusiness services
  • Equipment and other manufacturing
  • Food and supplies wholesaling
  • Industry Activities
  • Soybean and corn farming
  • Frozen foods
  • Beef cattle production, dairy cattle farming and meat processing
  • Margarine and cooking oil processing
  • Corn, soybean and wheat wholesaling
  • Dairy product and milk production
  • Farm supplies and farm equipment wholesaling
  • Fruit and vegetable wholesaling
  • Tractors and agricultural machinery retailing
  • Fertilizer and pesticide
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Agricultural price index
  • Natural disaster index
  • Trade-weighted index
  • Population

  • Current Performance
  • Industry structure and price volatility
  • Corporate agribusiness boosts profit and drives research and development
  • Trade and tariffs
  • Chart: Revenue Growth

  • Industry Outlook
  • Fields of green on the horizon
  • Biofuel
  • Worldwide demand
  • Table: Agribusiness Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Agribusiness Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Meat Markets
  • Chain Restaurants
  • Single Location Full-Service Restaurants
  • Caterers

  • Key Selling Industries
  • Commercial Banking
  • Loan Brokers
  • Long-Distance Freight Trucking
  • Machinery Maintenance & Heavy Equipment Repair Services
  • Rail Transportation

  • Products & Services
  • Food and supplies wholesaling
  • Food manufacturing
  • Crop and livestock farming
  • Agribusiness services
  • Equipment and other manufacturing
  • Chart: Agribusiness Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Internal agribusiness segments (excluding farmers)
  • Supermarkets, convenience stores and grocery stores
  • Food service industries (e.g. restaurants and cafes)
  • Farms and direct farming activities
  • Export markets
  • Chart: Major Market Segmentation for the Agribusiness Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchases and depreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Agribusiness

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Agribusiness Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Agribusiness Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Agribusiness Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Agricultural price index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • It is also called agrifuel or biodiesel. It is a fuel consisting of or derived from dead biological material, usually plants.
  • Genetic Modification (Gm)
  • A technique in which specific changes are introduced into a plant or animal's DNA through genetic engineering techniques.
  • North American Free Trade Agreement (Nafta)
  • An agreement signed by the governments of Canada, Mexico and the United States to create a trilateral trade bloc in North America.
  • What Our Customers Say

    Why buy this report?

    The Agribusiness Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Agribusiness:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Agribusiness market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Agribusiness, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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