Tainted harvest: Large drops in fertilizer and feed prices will cause significant revenue declines

While the performance of the Farm Supplies Wholesaling industry largely depends on demand from the agriculture sector as a whole, the single most important determinant of revenue growth is the price of farm-supply inputs. Material inputs underwent a period of net growth during the past five years. Moreover, the industry is projected to experience stifled growth over the five years to 2022, as heightened demand from downstream livestock farmers is offset by a slow rise in farm input prices. Industry revenue tends to grow alongside the price of inputs because wholesalers pass along the majority of increased costs to downstream markets. IBISWorld forecasts subdued feed and fertilizer prices will grow revenue slowly...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Industry wholesalers are integrated into the supply chain of farming cooperatives
  • The industry’s size has been shrinking despite rising profitability and revenue gains
  • Falling commodity and gas prices will keep feed and fertilizer prices in check
  • Industry Report - Industry Investment Chapter

    The Farm Supplies Wholesaling industry exhibits a moderate level of capital intensity; for every dollar spent on employee wages, $0.29 is spent on capital. Capital intensity has remained relatively stagnant over the past five years though the industry is becoming increasingly automated. Operators have adopted new technologies to help streamline the wholesaling process. For instance, technologies such as radio frequency identification (RFID) are used to track orders and inventory levels, limiting the need for labor.At the same time, workers' functions are shifting away from labor-intensive stocking and packaging activities toward customer relations. Ope...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

  • 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
  • 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
  • An association formed by farmers, distributors and processors with the purpose of benefiting its member-operators.
  • Genetically Modified (Gm)
  • 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.
  • 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 Farm Supplies Wholesaling Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Farm Supplies Wholesaling industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    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 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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