Strike oil: Expanding demand for oilseeds is expected to stabilize revenue and profit margins

Over the past five years, the price of oilseeds declined, leading revenue for the Oilseed Farming industry to fall. However, industry revenue is expected to rebound over the five years to 2022 as oilseed prices stabilize. Moreover, the growing acceptance and adoption of vegetable oils will continue to help improve demand from the US consumer. Biofuel production will also increase, which is anticipated to generate steady demand for oilseeds as part of the Renewable Fuels Program. However, low prices as a result of overproduction in the past will likely make industry operators leery of overplanting over the next five years...purchase to read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
-4.4%
Forecast Growth 17-22
Profit
Employment
15,566
Businesses
15,431
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The price of oilseeds is typically the most reliable driver of industry performance
  • Oilseed farming is vulnerable to unpredictable weather conditions
  • Demand for high-quality vegetable oil in key foreign markets will boost exports
  • Industry Report - Starting a New Business Chapter

    Overall, there are few barriers to entry into this industry. Generally, all inputs are readily available, producers can usually shift between cropping activities with ease, and there are often many farms for sale. Nonetheless, two possible barriers include capital investment requirements and problems securing financing for such an investment.The establishment of oilseed growing operations requires considerable investment. New participants need to purchase land, grain silos, and machinery such as harvesters and tractors. According to the 2012 Agricultural Census (latest data available), the average US oilseed farm occupied land and buildings worth $2.1 million and employed plant and machinery valued at $373,523. Bot...purchase to read more.

    Additional Insights for the Oilseed Farming Industry

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

  • Economies of scale
  • Ability to alter goods and services produced in favor of market conditions
  • Appropriate climatic conditions
  • IBISWorld analysts also discuss how external factors such as Price of oilseeds and Demand from food manufacturing in the Oilseed Farming industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Oilseed Farming Industry?

    Farmers in this industry grow a variety of oilseeds, including canola seeds, sunflower seeds, flaxseeds, safflower seeds and mustard seeds. Soybeans (IBISWorld report 11111) and cottonseeds are not included in this industry report.

    Industry Products
  • Canola
  • Flaxseed
  • Mustard seed
  • Safflower
  • Sunflower
  • Peanuts
  • Rapeseed
  • Industry Activities
  • Canola farming, field and seed production
  • Flaxseed farming, field and seed production
  • Mustard seed farming, field and seed production
  • Rapeseed farming, field and seed production
  • Safflower farming, field and seed production
  • Sunflower farming, field and seed production
  • Sesame farming, field and seed production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Price of oilseeds
  • Demand from food manufacturing
  • Trade-weighted index
  • Natural disaster index
  • World price of soybeans

  • Current Performance
  • Competition
  • Demand from biofuel production
  • Unpredictable weather and profit
  • Industry participation
  • Chart: Revenue Growth

  • Industry Outlook
  • International trade
  • Profit
  • Genetic modification
  • Table: Oilseed Farming Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Animal Food Production
  • Flour Milling
  • Margarine & Cooking Oil Processing
  • Corn, Wheat & Soybean Wholesaling

  • Key Selling Industries
  • Corn, Wheat & Soybean Wholesaling
  • Crop Services
  • Farm, Lawn & Garden Equipment Wholesaling
  • Tractors & Agricultural Machinery Manufacturing

  • Products & Services
  • Peanuts
  • Canola
  • Sunflower
  • Flaxseed
  • Safflower
  • Mustard seed
  • Rapeseed
  • Chart: Oilseed Farming Industry Products and Services Segmentation

  • Demand Determinants
  • Edible oils production
  • The price of oilseeds relative to alternative oilseeds
  • Consumer tastes and preferences
  • Activity in intensive livestock production
  • Activity in biofuel production
  • Exchange rates

  • Major Markets
  • Domestic oilseed wholesalers
  • Domestic oil processors
  • Exports
  • Domestic seed sales
  • Chart: Major Market Segmentation for the Oilseed Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Utilities and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Oilseed Farming

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oilseed 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 Oilseed 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 Oilseed Farming Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Price of Oilseeds (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Canola
  • A cultivator of rapeseed that has lower levels of erucic acid.
  • Genetic Modification
  • 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.
  • Trans-Fat
  • Also known as trans fatty acid, it is found in small amounts in foods such as dairy products and animal meat, but it can also be created by the hydrogenation of some vegetable oils.
  • What Our Customers Say

    Why buy this report?

    The Oilseed Farming 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 Oilseed 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 Oilseed 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 Oilseed Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear