Industry Analysis & Industry Trends
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 2021, 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 Report - Starting a New Business Chapter
The barriers to entry into the Farm Supplies Wholesaling industry are few and low, as indicated by the several thousand operators within the industry at present. No official license or permission is necessary to get started, although distributors that handle dangerous agricultural chemicals harmful to human health must follow storage and handling guidelines. This fact, however, does not represent a major barrier to entry.
Additionally, there are few industry incumbents who hold substantial market share beyond their limited regional reach. The result is an industry easy to enter and exit, which has been demonstrated by the recent downsizing of industry operators. Initial investments may be a barrier for some new entrants, but this is typical of any industry within this sector... purchase to read more