Tainted harvest: Large drops in fertilizer and feed prices have caused significant revenue declines

Over the five years to 2017, the financial performance of the Farm Supplies Wholesaling industry has been affected by unpredictable feed and fertilizer prices. While rapid rises in the cost of important industry products led to sharp revenue increases in 2012, a series of bumper crops and the boom in fracking have led both feed and oil prices to fall in recent years. Overall, these countervailing trends have led the industry to decline over the five years to 2017. The next five years have the potential to radically change the industry. Uncertainty surrounding the development of genetically modified (GM) crops will likely have a turbulent effect on seed sales as prices ease...purchase to read more.

Industry Statistics & Market Size
Revenue
$117bn
Annual Growth 12-17
-3.5%
Forecast Growth 17-22
Profit
Employment
94,647
Businesses
11,329

Industry Threats & Opportunities

  • A number of larger producers have been able to work around wholesalers, forcing them out of the industry
  • The use of insecticides and fungicides has decreased over the past five years
  • The movement against genetically modified products has created a niche market
  • Industry Report - Industry Locations Chapter

    The distribution of farm supplies wholesalers throughout the United States closely follows the distribution of establishments in the agricultural sector. Farmers who require agricultural chemicals, plant seeds, bulbs, animal feeds and other supplies, generally buy their inputs from a local supplier. For this reason, the Plains and the Southeast regions together account for the majority of industry establishments, with 23.3% and 20.1% of the total, respectively. The distribution of revenue closely tracks the geographic spread of establishments due to the fact that most operators serve customers within their immediate region.The Plains region is home to many farms and wholesalers due to its agreeable weather and soil conditions. Liv...purchase to read more.

    Additional Insights for the Farm Supplies Wholesaling Industry

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

  • Effective cost controls
  • Ability to control stock on hand
  • Having a cost effective distribution system
  • IBISWorld analysts also discuss how external factors such as Natural disaster index and Price of feed in the Farm Supplies Wholesaling industry impact industry performance..

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    What's in this report

    What is the Farm Supplies Wholesaling Industry?

    This industry distributes a range of manufactured and other goods to crop and livestock farmers. A wholesaler may have exclusive distributorship to sell a particular brand within a specified territory, but most often they will sell such products in competition with other wholesalers.

    Industry Products
  • Animal feed
  • Fertilizers
  • Fungicides and insecticides
  • Seeds and plant bulbs
  • Herbicides and soil conditioners
  • Industry Activities
  • Animal feed distribution
  • Fertilizer, herbicide and pesticide distribution
  • Plant seed and plant bulb distribution
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Natural disaster index
  • Price of feed
  • Price of fertilizer
  • Demand from agriculture, forestry, fishing and hunting
  • Demand from chemical manufacturing

  • Current Performance
  • Volatility hampers growth
  • Pesticides and intellectual property
  • Subdued profit margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Subdued growth
  • Marginal profitability
  • Consumer trends
  • Sizeable industry
  • Table: Farm Supplies Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Farm Supplies Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Vegetable Farming
  • Fruit & Nut Growers
  • Livestock Ranching & Farming
  • Nursery & Garden Stores
  • Chicken & Turkey Meat Production

  • Key Selling Industries
  • Fertilizer Manufacturing
  • Hay & Crop Farming
  • Pesticide Manufacturing
  • Plant & Flower Growing
  • Soybean Farming

  • Products & Services
  • Fertilizers
  • Seeds and plant bulbs
  • Herbicides and soil conditioners
  • Animal feed
  • Other
  • Fungicides and insecticides
  • Chart: Farm Supplies Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Livestock farmers
  • Wheat, corn, soybean and general cash grains
  • Other field crops and specialty crops
  • Chart: Major Market Segmentation for the Farm Supplies Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Additional expenses
  • Chart: Cost Structure Benchmarking – Sector vs Farm Supplies Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Farm Supplies Wholesaling Industry

  • Industry Globalization
    CHS Inc., Land O'Lakes Inc.,
  • Table: CHS Inc. - financial performance
  • Table: Land O'Lakes Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Farm Supplies Wholesaling 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 Farm Supplies Wholesaling Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Price of feed (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Cooperative
  • An association formed by farmers, distributors and processors with the purpose of benefiting its member-operators.
  • Genetically Modified (Gm)
  • Refers to plants or animals that have DNA manipulated through genetic engineering techniques. The most commonly modified foods include soybeans, corn and canola.
  • Nonpoint Source Pollution
  • A type of water pollution that does not have a specific source, but is rather collected from diffuse sources, such as agricultural irrigation runoff.
  • Plant Bulb
  • An underground stem or root surrounded by fleshy leaves that contain plant food and nutrients. Bulbs are used in planting and transplanting nursery crops and flowers.
  • Radio Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by releasing continuous signals from a chip.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Farm Supplies Wholesaling is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
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    This report on Farm Supplies Wholesaling:
    • 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 Farm Supplies Wholesaling 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 Farm Supplies Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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