New harvest: Consumer preferences will drive demand for organic hay and processed sugar

Over the five years to 2016, industry revenue is expected to decline. However, increased demand for industry products including hay and crops such as mint, maple syrup and sugar beets will start to turn the industry around. As consumers become increasingly health-conscious, they will opt for healthier alternatives to high fructose corn syrups, such as sugar beets, driving industry demand. IBISWorld anticipates industry revenue to grow slightly over the five years to 2021. Growth is a result of continued consumer preference for organic meats and dairy will increase demand for high-value organic hay...purchase to read more.

Industry Statistics & Market Size
Annual Growth 11-16
Forecast Growth 16-21
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Changing consumer preferences toward organic meats and dairy will increase demand for high-value organic hay
  • More consumers now prefer natural sweeteners such as sugar beets, mint and maple syrup
  • Despite contractions due to a weakening Beef Cattle Production industry, new uses for hay will offset some decline
  • Industry Report - Industry Investment Chapter

    Capital intensity within this industry is high due to the nature of the industry operations. Labor costs are relatively low within the industry. As seen by an employee to establishment ratio of 1.1:1, industry operations are almost entirely done by the farm owner's family. This artificially keeps wage costs low. The only way that wages can be kept low is through the use of equipment like tractors and bales. These pieces of equipment are expensive causing total depreciation for the industry to be high. These two factors combine to create a capital intensive industry. Capital intensity to wages has decreased over the five years to 2016 to $1.01 on the dollar from $1.18 in 2011...purchase to read more.

    Additional Insights for the Hay & Crop Farming Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hay & Crop Farming Industry are

  • Appropriate physical growing conditions
  • Economies of scale
  • Ability to take advantage of government subsidies and other grants
  • IBISWorld analysts also discuss how external factors such as Demand from beef cattle production and Demand from food manufacturing in the Hay & Crop Farming industry impact industry performance..

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    What's in this report

    What is the Hay & Crop Farming Industry?

    More than half the farms in this industry grow hay, while a small number grow sugar beets. A variety of other crops, such as hops and herbs, are included in the industry. Some establishments also gather agave, spices, tea and maple sap.

    Industry Products
  • Hay
  • Sugar beets
  • Hops
  • Mushrooms
  • Other Crops
  • Industry Activities
  • Hay, alfalfa and other farming
  • Sugar beet farming
  • Hop farming
  • Aloe, mint and herb farming
  • Tea and spice farming
  • Maple tapping
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from beef cattle production
  • Demand from food manufacturing
  • Per capita sugar and sweetener consumption
  • Trade-weighted index
  • Natural disaster index

  • Current Performance
  • Hay fluctuates
  • New flavors
  • International demand rises
  • Chart: Revenue Growth

  • Industry Outlook
  • Organic farming drives growth in hay market
  • Sweetening the deal
  • Table: Hay & Crop Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hay & Crop Farming Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Beef Cattle Production
  • Dairy Farms
  • Hog & Pig Farming
  • Sheep Farming
  • Horse & Other Equine Production
  • Sugar Processing
  • Breweries
  • Soft Drink, Baked Goods & Other Grocery Wholesaling
  • Cotton, Sugar & Tobacco Wholesaling

  • Key Selling Industries
  • Crop Services
  • Farm Supplies Wholesaling
  • Farm, Lawn & Garden Equipment Wholesaling
  • Pesticide Manufacturing
  • Water Supply & Irrigation Systems

  • Products & Services
  • Other Crops
  • Hay
  • Sugar beets
  • Mushrooms
  • Hops
  • Chart: Hay & Crop Farming Industry Products and Services Segmentation

  • Demand Determinants
  • Livestock production
  • Price
  • Food processors
  • Exchange rates

  • Major Markets
  • Other
  • Livestock farmers
  • Exports
  • Chart: Major Market Segmentation for the Hay & Crop Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitRent, utilities and depreciationPurchasesWages
  • Chart: Cost Structure Benchmarking – Sector vs Hay & Crop Farming

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hay & Crop Farming 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 Hay & Crop Farming 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 Hay & Crop Farming Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Exports (2007-2021)
  • Imports (2007-2021)
  • Wages (2007-2021)
  • Acres of hay harvested (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • A fuel consisting of, or derived from, dead biological material, usually plants.
  • Cooperative
  • A jointly owned, vertically integrated organization, also referred to as a co-op, that produces and distributes goods for the benefit of the owners.
  • Genetically Modified
  • A technique where specific changes are introduced into a plant or animal's DNA by genetic engineering techniques. The most common modified foods include soybean, corn and canola.
  • Yield Per Acre
  • The volume of crops that can be produced for every acre; the term can apply to harvested acreage or planted acreage.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hay & Crop Farming Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

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    This report on Hay & Crop Farming:
    • 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 Hay & Crop Farming 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 Hay & Crop Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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