The latest report released by market researchers IBISWorld on the Australian animal feed production shows that the industry shrank 5.8% in the last five years.
The industry has been hard hit with difficult trading conditions caused by adverse price movements and erratic weather conditions. Over the past five years feed grain prices have greatly fluctuated, in response to both global production levels/prices and adverse weather conditions across major producing regions.
The report details the wages to depreciation ratio of the Australian feed industry, and shows the level of depreciation has increased over the period with companies investing in machinery with increased automation (lowering production costs), along with advances in feed technology.
The animal feed production indsutry was valued at $4bn, with it currently supplying employment to 5,174 people throughout the country.
There are currently 384 businesses involved in the business of animal feed production in Australia. The companies currently with the largest market share include Inghams Enterprises (11 stock feed mills), Ridley (17 feed mills, plus 2 supplements plants, an aquafeed plant along with an investment in 2 liquid feed plants), Riverina Australia (6 feed mills) and CopRice (SunRice) (with 3 feed mills).